What Happens to Debt During a Divorce in Texas?

 Posted on April 20, 2025 in Property Division

During a divorce, the process of dividing assets can be brutal, especially if you are dealing with a contentious, high-asset divorce. Unfortunately, property division also involves distributing debts among the parties involved. This can include credit cards, bank loans, car payments, and more. First, you have to determine what counts as marital debt, making it eligible for division. When you enlist the help of a McKinney, TX divorce attorney, you will know your rights and have a skilled legal advisor on your side throughout the process. 

Is Debt Considered Community Property?

Texas is one of nine community property states, and community property states consider most property acquired during the marriage as belonging to both spouses. This also includes most debt. During divorce proceedings, debt is typically divided equally between spouses. However, because Texas law allows for fault-based divorce, the split can be adjusted if there is proof of certain actions during the marriage, including domestic violence and adultery. 

Are There Options for Dividing Debt?

The equal split of debt in a Texas divorce is the default, but in practice, there are more options. Some other ways that you may be able to divide debt in your divorce include:

• Reach an agreement with your spouse to sell some of your joint property and use the money to pay off debts.

• Have the spouse who earns more money take on a larger portion of the debt for a more even financial solution.

• Agree to take the debt for any asset that you will keep after the divorce, such as taking full ownership of the car loan if you plan to take the car.

In divorce cases, the judge will typically approve agreements made between spouses. If you cannot agree, the court will hold a hearing and determine how to divide the debt and assets.

Do Creditors Recognize the Division of Debt?

Creditors are generally not beholden to the terms of your divorce order. Therefore, they will likely not consider it when seeking restitution for defaulted loans. For example, if the court divides your credit card debt by ordering you to pay off one card and your spouse to pay off another, the creditor will likely come after you if your spouse does not pay. The same can be true for any loan or debt acquired during the marriage, such as a mortgage.

Schedule a Consultation With a Collin County, TX Divorce Attorney

At The Ramage Law Group, we focus on client relationships and ensuring you have all the information you need to make the best choices for you and your family. If you have concerns about debt division in your divorce, one of our McKinney, TX divorce lawyers can help you understand your rights and will advocate for you in all divorce proceedings. Call 972-562-9890 to schedule a consultation today and find out how Texas law applies to your case.