When you are going through a divorce, the financial weight often feels just as heavy as the emotional transition. You may be worried about credit card balances, the mortgage or car loans that were once shared responsibilities. It is a stressful time, but understanding the rules in Massachusetts can help you find a path forward.
Understanding the principle of equitable distribution
A common misconception is that all debt is simply split down the middle. In Massachusetts, the courts follow the principle of equitable distribution. This means a judge will divide marital debt based on what is fair under the circumstances, which is not always a perfect 50/50 split.
Under Massachusetts law, the court must consider several factors, including the length of the marriage, any financial “waste” by a spouse, and your overall ability to manage debt based on your net income and support obligations.
This ensures that the person assigned the debt actually has the financial room to pay it off after other mandatory costs are settled.
Distinguishing marital and separate debt
Generally, courts consider debt acquired during the marriage to be marital debt. This is often true even if the account is only in your name or your spouse’s name. If you used the debt for the family, such as home repairs or groceries, the court typically views it as a joint obligation.
However, debt brought into the marriage from before the wedding is often handled separately, though Massachusetts judges have the broad authority to include any debt in the final division if they determine it is equitable to do so.
Moving toward financial independence
One of the most important things to remember is that a divorce decree does not automatically change your contract with a lender.
If a judge orders your spouse to pay a joint credit card, but fail to do so, the credit card company can still seek payment from you. This is because the bank was not a party to the divorce. As a result, many people choose to ensure that joint accounts are closed or refinanced as part of the final settlement.
Taking these steps helps protect your credit score as you begin your next chapter with a clean slate.
