PLM Family Law

  1. Home
  2.  → 
  3. Divorce
  4.  → Handling debt amid divorce

Handling debt amid divorce

When a North Dakota marriage ends, an essential part of disentangling your life from your ex’s involves taking care of your assets and debts. Doing so gives each of you a chance at a fresh financial start and helps you plan and budget for life without your one-time partner.

Per Yahoo Finance, state laws play a big role in determining what happens to debt. North Dakota is not a community property state, so courts may not decide everything down the middle. Instead, other factors help determine whether you, your ex or both of you are responsible for paying off a particular debt.

Handling mortgage debt

Many married couples purchase homes together and add both of their names to the mortgage loan. If this holds true in your situation, then both you and your ex have an obligation to take care of the mortgage debt. However, if one of you wants to keep the home and the other does not object, the part who stays there may have to refinance the loan and get it into just one name.

Handling other types of debt

When it comes to other types of debts, whether you are financially responsible for them typically depends on two things. If your name is on a loan or account, such as a credit card account, then yes, you typically have an obligation to pay down that debt. The same holds true if you cosigned for a loan or credit card. Otherwise, though, debts may not be your financial responsibility.

Keep in mind that, in some cases, courts may decide to make one or both parties pay down a debt as part of a divorce agreement.