Dividing property during a divorce is only part of the process. Debts can also affect what each spouse takes on after the marriage ends. Credit cards, car loans, mortgages and medical bills all factor into the divorce. In Texas, the timing and nature of a debt can affect how a court handles it in a divorce.

How Texas treats marital debts

Debts incurred before marriage generally remain that spouse’s separate obligations, although the property available to satisfy a debt can depend on Texas marital-property and creditor-liability rules.

For debts incurred during the marriage, Texas courts consider whether the debt is community or separate, the parties’ legal responsibility to the creditor and how the spouses should allocate the debt under the “just and right” standard.

A common misconception is that one spouse is automatically personally responsible for any debt the other spouse takes out during the marriage. If only one spouse signs for a loan or credit card, the other spouse is generally not personally liable to the creditor merely because the parties were married. Exceptions may apply if the signing spouse acted as the other spouse’s agent or the debt was incurred for a legally recognized necessary. The creditor’s rights may also depend on which community or separate property is subject to the liability.

How courts divide community debts

A Texas court must divide the community estate, including applicable community liabilities, in a manner that is “just and right.” This does not always mean a 50/50 split. Courts may consider the overall circumstances of both spouses when deciding how debts should be allocated, including:

  • Credit card balances
  • Car loans
  • Mortgage debt
  • Personal loans
  • Medical bills
  • Student loans

Student loans may require special analysis, particularly when only one spouse borrowed or when the other spouse co-signed.

Your divorce order does not erase debt

A divorce decree can assign responsibility for a debt between you and your ex-spouse, but it does not change your agreement with the lender.

For example, if both spouses signed for a car loan and the judge orders your ex to make the monthly payments, the lender may still have the right to collect from you if your ex stops paying. The divorce order may give you legal recourse against your ex-spouse in family court, but it does not remove your obligations under the loan agreement or prevent harm to your credit.

Knowing your financial obligations

Protecting your financial interests starts with knowing what you owe. Gathering loan agreements, bank statements and debt records before filing can help identify separate and community obligations.

Working with an experienced attorney can help clarify how Texas law treats the debts and whether the final decree should include protections such as refinancing requirements or indemnification clauses.