The Impact of Dividing Debts at Divorce
Allison Gerli • September 22, 2020
What Happens To Debt After Divorce? Who is Responsible? What You Need To Know.
You and your spouse may have accumulated debts of various types during the course of your marriage. If so, you are probably concerned about how to divide those debts and what the consequences will be if the debts are not paid, particularly if you do not trust that your spouse will be responsible about making payments.
If a debt was undertaken by you and your spouse jointly (generally the case for home mortgage and car loans, and often the case for credit cards), you and your spouse probably are jointly and severally liable
for payment of that debt. This means that the creditor can pursue either or both of you to obtain payment.
The creditor (bank, mortgage company, department store, credit card company, etc.)
is not a party to your dissolution of marriage proceeding. In the divorce settlement, the debts will be allocated between you and your spouse by agreement or, if you have a trial, the Judge will order who is responsible for each debt.
Despite the allocation of debt in a divorce judgment, debts in joint names will remain in joint names, unless the person the debt is allocated removes the other party from responsibility. The creditor is not bound by any agreements reached between the two of you as to who is responsible post-divorce, nor is it bound by a court order as to who is responsible for the debt. A creditor can still pursue either you or your spouse for an unpaid debt, regardless of who the court designates to pay the debt.
As a result, it is important to understand that, even when a court specifically orders that one party is solely responsible for payment of a home mortgage or other loan or other debt, if both parties’ names remain on the loan or debt, both parties remain responsible for its payment. Transfer of the title of your home by quitclaim or other deed does not in any way alter your obligation under an existing mortgage loan.
The divorce judgment may include an indemnification and hold harmless clause. Typically, these provisions are used so that a party who agrees or is ordered to pay a certain debt is responsible for reimbursing the other party if the other party ends up paying the debt instead. Although these clauses do provide you with recourse through the courts should your former spouse fail to pay a debt, as a practical matter, if the creditor has been unable to collect form your former spouse, your chances of doing so are not much better. Your goal should be to reduce the risk of problems related to the marital debt post-divorce.
What To Consider When Settling Your Case
If you are hoping to settle your case, it is important to consider your spouse’s likelihood to responsibly pay the debt that is allocated in the settlement. The spouse’s failure to pay, or failure to pay on time, can affect your credit rating and of course impact you in other ways.
Sometimes parties agree to delay selling or refinancing the house for a period of years so that one of the spouses can remain in it after the divorce. Often that spouse is not able to qualify to refinance at the time of divorce. If you are the non-resident spouse and you are considering this option, you need to consider what this could mean if you want to purchase a residence or take on some other large debt before the time for your spouse to refinance or sell the home arrives. The obligation on the mortgage may result in your being denied credit, even if your spouse is paying the mortgage on time. This is something that we may need to discuss as settlement options are generated.
It may be important for both spouses to obtain credit reports to ensure all debt is being disclosed and addressed as part of the divorce process. This is something that can be requested of both parties to a divorce.
Please discuss your current debt situation with your attorney so that the appropriate measures such as closing accounts may be taken to protect your credit rating and preserve martial assets. You need to be aware of all outstanding debts when preparing settlement options or proposing how property and debt will be divided at trial.
If you have questions or concerns about your situation, the
attorneys at The Center for Family Law are here to help.
We are proud to share that the Center for Family Law ha s received the Gerald R. Ortbals Law Practice Award at the 2026 For the Common Good Awards, presented by Legal Services of Eastern Missouri (LSEM). The ceremony was held in August at the Ritz-Carlton, bringing together the region's legal community to celebrate outstanding contributions to access to justice. A Firm-Wide Commitment to Pro Bono Service The Ortbals Award recognizes The Center for Family Law's longstanding dedication to pro bono service. The firm's attorneys have consistently been among LSEM's most active, reliable, and supportive partners for family law referrals. Family law cases are rarely simple. They often sit at the intersection of a client's safety, stability, and the wellbeing of their family. The attorneys who take on this work do so knowing the stakes are personal and the outcomes matter deeply to the people they represent. While LSEM has previously honored individual attorneys from the firm for their pro bono contributions, this year's award is different: it celebrates The Center for Family Law as a whole. It reflects a culture, built over more than two decades, where taking on complex, often difficult family law matters for clients who could not otherwise afford representation isn't the exception, it's the norm. That kind of consistency does not happen by accident. It is the result of firm leadership prioritizing pro bono work, attorneys stepping up case after case, and a shared belief that access to skilled legal counsel in family law matters shouldn't depend on a client's ability to pay. Thank you LSEM for this honor !
We're delighted to announce that our attorneys' hard work and commitment to clients has once again been recognized by their peers. This year, four members of The Center for Family Law team have earned spots in the 2027 edition of Best Lawyers. Ann Bauer - Best Lawyers list for family law, family law mediation, and collaborative law (family law). This marks Ann's 13th year on the list. Allison Gerli - Best Lawyers list for family law, family law mediation, and collaborative law (family law). This is Allison's 4th year of recognition. Kristen Sparks - Named to the Best Lawyers "Ones to Watch" list for family law, family law arbitration & mediation, and alternative dispute resolution. This is Kristen's 2nd year being honored. Hallie Van Duren - Named to the Best Lawyers list for family law, family law mediation, and collaborative law (family law). This is Hallie's 3rd year of recognition. In addition, The Center for Family Law itself has been named a Best Law Firm for 2027 in St. Louis as Tier 1 for Family Law and Family Law Mediation. About Best Lawyers Since 1983, Best Lawyers has stood as one of the most trusted guides to legal excellence. Attorneys featured in The Best Lawyers in America are nominated and reviewed by their peers based on professional skill, and each undergoes a thorough verification process confirming they are actively practicing and in good standing. About The Center for Family Law. Founded in 2013, The Center for Family Law offers full-service representation across all areas of family law, guided by a philosophy of partnership with clients and fellow professionals. We believe an attorney's role is to work alongside clients — helping them understand their options and giving them the knowledge and confidence to make sound decisions for their future. To schedule a consultation, click here .
The Center for Family Law celebrates Courtney Green's recognition at the 2026 Missouri Lawyers Media Women’s Justice Awards in the Mentor category, recognizing her outstanding contributions to the legal profession and her commitment to the development of attorneys starting their careers. The 28th annual Women’s Justice Awards on April 16, 2026 celebrated women across Missouri who exemplify leadership, integrity, service, and excellence in advancing the quality of justice. Honorees are selected from diverse sectors of the legal community, including private practice, the judiciary, public service, academia, and nonprofit leadership. The Mentor Award is presented to experienced legal professionals who have played a meaningful role in shaping the careers of emerging attorneys. Throughout Courtney's career, which she has spent with The Center for Family Law, she has demonstrated a deep dedication to mentorship, offering guidance, encouragement, and opportunities to those entering the profession, both in and out of the firm. Courtney has been devoted to fostering professional growth and helping cultivate the confidence and skills of future leaders in the law. Please join us in congratulating Courtney on this well-deserved recognition. We are honored to have her as part of our firm and grateful for the example she sets within our profession and community.