What are the Risks of Joint Debts?
Though a Court may order one spouse to pay a joint debt incurred during the marriage, it cannot change or impair the rights of creditor who has existing contractual rights to require payment from one or both spouses.
As a practical matter, regardless of which spouse is ordered to pay, both spouses are exposed to the possibility of a marital debt becoming chargeable against them during or after a divorce. An order that one spouse pay a joint marital debt or separate debt of the other spouse does not entirely protect the non-ordered spouse from the consequences of non-payment, such as late notices, adverse credit reports, or collection actions.
As a minor protection, a spouse can notify a creditor after the entry of a divorce decree requiring the other spouse to pay a specific marital debt. Such notification may create an obligation on the part of the creditor to attempt to collect first from the spouse ordered to pay the debt before making any adverse reports to the non-paying spouse's credit.>BR>
As a practical matter, regardless of which spouse is ordered to pay, both spouses are exposed to the possibility of a marital debt becoming chargeable against them during or after a divorce. An order that one spouse pay a joint marital debt or separate debt of the other spouse does not entirely protect the non-ordered spouse from the consequences of non-payment, such as late notices, adverse credit reports, or collection actions.
As a minor protection, a spouse can notify a creditor after the entry of a divorce decree requiring the other spouse to pay a specific marital debt. Such notification may create an obligation on the part of the creditor to attempt to collect first from the spouse ordered to pay the debt before making any adverse reports to the non-paying spouse's credit.>BR>
Divorce FAQ
The foregoing information is general, non-case-specific information and is not intended to constitute legal advice or to form an attorney-client relationship. We provide aggressive, competent representation in all areas of divorce and family law, including child custody, visitation, child support, alimony awards, modifications, guardianships, adoptions, prenuptial agreements and all related matters. To schedule an appointment with one of our attorneys, please contact our office at 801-377-4652.
Courtyard at Jamestown
3575 North 100 East
Suite 325
Provo, Utah 84664
Phone: 801-377-4652
Fax: 801-377-4673
3575 North 100 East
Suite 325
Provo, Utah 84664
Phone: 801-377-4652
Fax: 801-377-4673
