Divorce is full of challenges, one of which is the division of debts. When a marriage ends in Mississippi, debts get divided between partners using the principle of equitable distribution.
Equitable distribution is important for a smooth transition into post-divorce life and financial independence.
What is equitable distribution?
Equitable distribution means that the court examines several factors to decide how to fairly divide debts among the spouses. It is important to note that “equitable” does not always mean “equal.” The court considers each spouse’s financial situation, their earning potential, the duration of the marriage, and who incurred the debt.
Factors influencing the distribution of debts
The type of debt and who accrued it influence how the court divides it. For instance, if one spouse incurs significant credit card debt without the other spouse’s knowledge, the court may decide not to split it. However, both partners usually share other obligations taken on jointly, such as mortgages or car loans.
Considerations for joint and separate debts
The court is more likely to divide debts between both spouses if the debts relate to the family’s welfare. Conversely, the court may not require the sharing of those that clearly belong to one spouse, such as debts that occurred before the marriage. It is necessary for individuals going through a divorce to understand which ones are marital and which are not.
Impact of divorce on credit scores
Shared debts in a divorce can also impact individual credit scores, especially if mishandled. If a court assigns a joint debt to one spouse and they fail to make payments, it can negatively affect the credit scores of both parties. Each spouse should monitor their credit reports and ensure they handle all shared accounts properly during and after the divorce.
Navigating your financial future effectively begins with a clear understanding of debt division rules during divorce proceedings.
