South Carolina courts divide both property and debt during divorce, including certain assets and financial obligations acquired during the marriage. Mortgages, credit card balances, retirement accounts, and even some debts held in one spouse’s name may still be considered part of the divorce process.
At Query Sautter & Uricchio, LLC, our family law attorneys in Charleston, SC handle the financial and legal issues that often come with divorce. Below, we cover how South Carolina courts classify marital property and what the division process typically looks like.
What Counts as Marital Property in South Carolina?
Marital property generally includes assets and debts acquired during the marriage, regardless of whose name is on the account or title. This may include real estate, shared financial accounts, vehicles, or other property accumulated while married.
Property owned before the marriage is usually considered separate property. The same may apply to inheritances or gifts received by one spouse individually. However, separate property can become part of the marital estate in some situations, especially if it was mixed with shared assets or used for marital purposes.
Courts follow an equitable distribution system, which means property is divided fairly rather than automatically split down the middle. Prenuptial agreements can also affect how property is classified and may establish that certain assets remain separate regardless of what happens during the marriage.
How Do South Carolina Courts Divide Property and Debt?
South Carolina courts divide the marital estate as a whole rather than splitting every asset equally between spouses. One person may keep the family home while the other receives retirement assets or property of comparable value. The goal is a fair overall division based on the circumstances of the marriage.
When making these decisions, courts may consider the length of the marriage along with each spouse’s financial situation. Contributions made during the marriage can also play a role, including non-financial contributions such as caring for children or managing the household.
Debt is also part of the division process. Courts may consider who took on the debt and whether it was connected to the marriage or primarily benefited one spouse. Mortgages, vehicle loans, tax obligations, and credit card balances accumulated during the marriage may all be assigned between spouses as part of the final divorce order.
What Happens to Shared Debt After Divorce?
A divorce order doesn’t automatically remove a spouse’s responsibility to a lender or creditor. If both spouses originally signed for a debt, the lender may still pursue either person for payment even if the divorce agreement assigns the debt to only one spouse.
This means missed payments after divorce can still affect both spouses’ credit in some situations. Because a divorce order doesn’t automatically remove responsibility to the lender, spouses may need to close joint accounts or refinance certain debts to avoid future payment disputes.
Discuss Your Property Division Strategy
How you divide your property and debt will affect your finances long after your divorce is final. Because courts focus on what’s fair overall rather than dividing every asset equally, the details of a settlement matter. Leaving out shared debts or confusing personal property with marital property can damage your credit score later. Getting a fair result means looking carefully at everything you own and owe.
At Query Sautter & Uricchio, our family law attorneys work to protect your financial interests during negotiations or in court.
If you’re preparing to file for divorce in the Charleston area, contact our legal team to discuss your options or call our office at 843-795-9500 to schedule a consultation.