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How Is Marital Debt Decided?

On Behalf of | | Family Law

If you are facing a divorce in South Carolina, property division is a major consideration, and how debt is treated in the equation is another concern. The equitable – or fair – division of property in a South Carolina divorce is always based on the unique circumstances involved, and having an experienced South Carolina asset division attorney on your side is always in your best interest.

Marital Assets and Marital Debt

Anything that you and your spouse came to own while you were married is considered marital property, which means it belongs to both of you. This is regardless of whose name is on the title and of who made the purchase. The few exceptions to this rule include the following:

  • Gifts either of you received in your name alone
  • Inheritances either of you received in your name alone
  • The pain and suffering component of a personal injury settlement either of you received from a claim filed during your marriage

Anything that either of you owned prior to your marriage and that you kept separate during your marriage remains the separate property of that spouse. Any commingling of separate and marital funds, however, can blur the lines of this distinction, and any increase in the value of a separate asset over the course of the marriage will likely be treated as marital property.

In the Event of a Divorce

In the event of a divorce, marital assets must be divided in a manner that is considered fair, and this division must be offset by the marital debt, which refers to all the debt acquired over the course of the marriage – regardless of whose name is attached. This means that – for example – one spouse may walk away from the divorce with more assets, which is balanced by a greater share of the debt.

The Factors that Guide the Division of Marital Assets and Debt in South Carolina

The factors that South Carolina courts turn to when equitably dividing a divorcing couple’s marital assets – as offset by their debt – include the following:

  • The overall value of the marital estate
  • The amount of marital debt
  • Each spouse’s contributions to the marriage, including in terms of raising the children and homemaking
  • Each spouse’s earnings and earning potential
  • Each spouse’s overall physical and mental health
  • Whether alimony is included in the divorce terms
  • The tax consequences of the proposed property division

Reach Out to an Experienced South Carolina Asset Division Attorney Today

The dedicated South Carolina asset division attorneys at Query Sautter & Associates recognize how important a fair division of your marital assets and debt is to your future, and we will leave no stone unturned in our efforts to make this happen. Your case is important, so please don’t delay contacting us online or calling us at 843-795-9500 for more information about what we can do to help today.