Loans and divorces. Who gets the debts?

A divorce is not a pleasant process at all. When this moment comes, there are many things you should consider. For example, divide everything they got over the years, furniture, cars, money. But what about debts? Who gets them?

Yes, during a divorce it must be established who is left with that, and that also includes debts. We know that loans and divorce are words that don’t go well together, and that even sounds a little scary. In this article you will know how this process works and how to deal with it. Continue reading!

What happens to debts when you divorce?

money loan

Throughout our lives, we have all requested some kind of loan. Whether for a house, a car, studies or business, we have seen a growth opportunity but we could not finance it, and we have opted for a loan . Years passed, debts have not yet been paid, both in your and your spouse’s name, and now they face the division of what they once shared. During this process, the terms of division may vary depending on the state and laws in force. But most likely, if a loan is under the name of the two holders, it will be shared even after the divorce .  

During a divorce, equality is always sought, but it can also happen that if a person obtains more of the property acquired during the marriage, he will also be charged with most of the debt. It should be noted that if there is a loan that you have acquired during the marriage, but that is only under your name, it only belongs to you and will not be shared with your spouse after the divorce.

Tips for handling debts in case of divorce

money loan

In the event of an inevitable divorce, it is important to have a plan and make the best decisions to prevent debts from causing you financial problems in the future. Here are some tips to prevent a financial disaster.

Reach an agreement with the other party

If there is a possibility that the other party is interested in keeping a loan, it is worth a try. This can happen if the loan was a mortgage and a house or property is at stake. Preserving the property requires taking responsibility for the debt, so you would be solvent for this payment.

Pay the existing loan

money loan

If it is impossible to reach an agreement, the best option is for each party to take responsibility for their share of the debt immediately. Thus, a weight will be removed from the back quickly, and they will not have to worry in the future of unfulfilled payments or irresponsibility by the other party.


This may be the least desired option, but it is still a feasible way to avoid bearing a shared debt. It consists of selling the real estate and products that were acquired with the loan requested, and using the money to pay the debt of both parties. It is a harmful method, as it could affect the children of a marriage, but it is a way of ensuring that the loan is eliminated if either party is unable to pay half of the debt immediately.

Share the debt

money debt

This is perhaps the worst option, since you will have to trust that the other party is responsible for paying the loan responsibly. In case of death or disability, the debt will become completely yours, which is not a very beautiful scenario. And if any property was acquired, it will become one of the parties or will have to be shared equally. For this reason, the best thing you can do is keep your debts under control.