Our divorce clients often receive questions and address concerns about dividing debts during divorce. When explaining the property division portion of a divorce, questions about dividing debts are the most common. In Oklahoma, courts follow the “equitable division” doctrine to divide assets and liabilities fairly. However, “fairly” does not necessarily mean a 50/50 split.

Dividing Marital Property Debts in Family Law

Oklahoma law categorizes debt as either marital or separate property. During the divorce process, the equitable division doctrine considers which debts are marital and which are separate. As a result, understanding which debts qualify as marital property is very important. Marital property generally belongs to both spouses equally, while separate property does not.

First, marital debts are separated into secured and unsecured debts. Secured debts are tied to tangible property that a creditor can repossess in case of non-payment. Unsecured debts, on the other hand, are not tied to any specific property. For example, if you do not make your house payment, the bank can foreclose and seize the home—this is a secured debt. Credit card debt is a common example of unsecured debt. Generally, the spouse who receives marital property tied to a secured debt will also assume responsibility for that debt after the divorce. The spouse who does not receive the property is no longer liable for those payments.

Second, if you and your spouse have unsecured debt, you may both remain liable for repayment even after the divorce is finalized. This is because, under the equitable division doctrine, both spouses likely benefitted from the credit during the marriage. As such, unsecured debts like credit card balances are typically considered marital property and subject to fair division.

Separate Property and Debts

The concept of separate property can be less clear when it comes to liability. For instance, student loan debt for a professional degree is usually classified as separate property. Since the degree primarily benefits one spouse, the debt typically remains that spouse’s responsibility after divorce. However, if student loan funds were used to pay for marital expenses such as housing, the debt could be considered marital property. In that case, both spouses could be responsible for repayment. When debt is strictly separate property, only the spouse who incurred it will be liable after the divorce.

Tulsa County Divorce Lawyers Near You

Our divorce clients often have questions and concerns about dividing debts in divorce.  When explaining the property division portion of a divorce, the dividing up of debts is our most common question.  In Tulsa Oklahoma, the courts follow the “equitable division” doctrine, which seeks to divide assets and liabilities fairly.  However, fairly does not necessarily equal 50/50. To get a free consultation with a Tulsa divorce attorney call Tulsa County Lawyers Group at 918.379.4864