In a divorce, the question of who gets the house, the car, or the boat receives a lot of attention. The division of debt in a divorce, particularly how that debt is identified and then divided between separating spouses by the court, seems to be a topic rarely discussed. Equal consideration should be paid to both what you receive and the cost. Karp & Iancu, S.C. can help you with the necessary legal support.
Debt division in Wisconsin divorce
Depending on the type of debt, the answer to the question of whether the debt is divided in a divorce is yes. In Wisconsin, debt accumulated during a marriage is regarded as marital debt. The court will distribute the marital debt evenly between the divorced couples if there is no pre-nuptial agreement or other arrangement between the spouses. It is crucial for the parties to give their attorney a complete accounting of all debt when filing for divorce since, in order to divide the debt, it must first be categorized appropriately.
Personal debt in Wisconsin before the marriage
Even though you are not responsible for the debt your spouse brings into the marriage, you may suffer from it. When applying jointly, your chances of getting a loan will be affected if one spouse has significant personal debt or bad credit. This is because they will be unable to contribute financially to the marriage. After all, they must pay off the debt incurred before the marriage.
Let’s examine what Wisconsin law deems to be marital debt. Any debt incurred during a marriage for the benefit of the family is regarded as marital debt in Wisconsin. All debt incurred during the course of constructing a home, paying utility bills, or just charging supper and a movie to a combined credit card is regarded as marital debt. Furthermore, this provision does not require that you have been married in Wisconsin.
In a Wisconsin divorce, who is responsible for credit card debt?
It might be challenging to divide credit card debt from marriage. There will be joint accounts that you are aware of and use frequently, but there may also be debt that you were unaware of but could still be required to pay.
What happens to my student loan debt if I divorce?
If the school loans were taken out before marriage, they are considered individual debt. If student loans were obtained during the marriage, particularly for the benefit of the family, they are regarded as marital debt and may be shared between the divorcing spouses. The court will weigh all the circumstances surrounding the marital student loan debt before deciding whether or not to divide it; however, this decision is not always made automatically.