Divorce can be messy enough without worrying about debt that isn’t even yours. It’s common to wonder what happens to the bills your spouse ran up, especially if you weren’t the one spending the money. In South Carolina, though, it’s not always about who spent what. Debt can get divided just like property, and if you’re not careful, you could end up paying for things you didn’t sign up for.
Before you agree to anything, it’s important to understand how debt is handled in a South Carolina divorce. You might have options to protect yourself, but you’ll need to know what the law says and what you can argue for in court.
How South Carolina Courts Divide Debt in Divorce
South Carolina is an equitable distribution state. That means the court divides both property and debt in a way that it considers fair, not necessarily equal. Marital debt is any debt that was taken on during the marriage, regardless of whose name is on the account. This can include credit cards, loans, car notes, and even tax debt.
If a debt was used for the benefit of the family, the court may consider it marital. For example, if your spouse opened a credit card in their name but used it to pay household bills, that debt is likely considered shared. On the other hand, if your spouse secretly ran up a credit card on personal purchases or gambling, you may be able to argue that the debt should stay with them.
Timing also matters. If the debt was taken on before the marriage, it’s typically considered separate debt that belongs to the person who incurred it. Similarly, debt taken on after you separated could be argued as that person’s responsibility, especially if it didn’t benefit the marriage.
What About Debt Assigned in the Divorce Decree?
The final divorce decree will lay out who is responsible for which debts. But it’s important to know that creditors don’t care about your divorce order. They only care about whose name is on the account. If a joint debt is assigned to your spouse in the divorce, but they don’t pay it, the creditor can still come after you if your name is still on the account.
That’s why it’s smart to try to refinance or close joint accounts during the divorce process if possible. Removing your name from shared debts protects you from being on the hook later if your ex doesn’t pay.
You can also ask the court to require your spouse to refinance debts into their name alone, though this isn’t always possible with every type of debt. If that can’t happen, be aware that your credit could still be affected by debts you no longer legally owe under the divorce order.
Final Thoughts
Debt doesn’t disappear just because your marriage ends. Without the right steps, you could still be stuck paying for your ex’s mistakes long after the divorce is final. But knowing what’s considered marital debt, and pushing for fair terms in the divorce, can help protect you.
At Cate & Brough, we help clients in South Carolina sort out property and debt division in a way that protects their financial future. If you’re facing divorce and worried about debt, contact us today to see how we can help you.
Cate & Brough, P.A.
