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Should You Pay Off Your Marital Debts During Divorce?Figuring out how you will divide your marital debt is one of the many important tasks you must complete during your divorce. As part of your divorce agreement, you can determine which debts each of you will be responsible for repaying. You also have the option of repaying your debts during or even before your divorce. Getting rid of the debt would relieve a financial burden on your life after divorce. However, it is possible that repaying your debts is not feasible or the best choice in your situation. There are several questions you should answer before deciding whether to immediately repay a debt.

Is It a Marital Debt?

The simple definition of marital debt is one that you entered into while you were married, but other factors can determine who is responsible for a debt, such as:

  • Whose name is on the loan agreement
  • Who has benefited from the loan

If you and your spouse are equally liable for the debt, paying it off immediately could be a prudent decision. You should not repay your spouse’s separate debts before you start your divorce negotiations. Instead, you can save it as a bargaining chip by offering to help repay the debt in exchange for marital assets.

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