You’ve probably already had long conversations about who keeps the house, the car, and, of course, the kids. But there’s one more piece people often wish to forget until it’s staring them in the face: “Who keeps the credit card and loan debt in a divorce settlement?” That question sounds simple, but it rarely is. And yes, it can end up being far more emotional and complicated than anything involving furniture, vehicles, or even the family dog.
Most people assume that if their name isn’t on the account, they’re safe. Others believe that any debt taken out during the marriage is automatically split 50/50. And then some think the court will “punish” one spouse by saddling them with all the balances. None of those assumptions is entirely correct.
In this blog, we’ll break down how debt division actually works in a Texas divorce—what the court looks at and why the name on the credit card doesn’t tell the whole story. Finally, we’ll look at how you can protect yourself before the judge signs the decree.
Texas Treats Debt the Same Way It Treats Property
Texas is a community property state. That means that anything earned, purchased, or accumulated during the marriage—including debt—belongs to both spouses, regardless of whose name is attached. The court doesn’t simply divide everything in half. Instead, it must divide assets and community debt in a manner that is “just and right.”
Sometimes that looks close to a 50/50 split. Other times, judges shift more debt to one spouse or offset it by giving a larger share of assets to that spouse. The key thing to remember is this: the court is looking at equity, not equality.
And that brings us to the next question—what goes into that decision?
What Judges Consider When Dividing Community Debt
A judge won’t ever just flip a coin. Instead, he or she will carefully consider several factors. The first step is to follow Texas law. However, a judge will also consider some other factors when deciding how to divide community debt.
- Each spouse’s earning ability
- Who benefited from the debt
- Whether one spouse wasted marital funds
- Fault in the breakup of the marriage
- Each spouse’s separate assets
Depending on how those facts stack up, a spouse could walk away with more assets but also more debt—or vice versa.
Practical Steps to Protect Yourself From Debt in a Divorce
There are some practical steps you can take to protect yourself from debt in a divorce.
In fact, before you ever set foot in a courtroom, you should:
- Pull Every Credit Report – Know precisely what debt exists in both names.
- Freeze Joint Credit Lines – Stops additional spending while the divorce is pending.
- Document Who Used Which Credit Cards – Helpful when arguing how debt should be allocated.
- Close Joint Accounts if Possible – Prevents surprise charges that might become “marital debt.”
- Consider a Temporary Agreement – Some spouses negotiate a written plan for who pays what during the divorce.
Keep in mind that creditors don’t care what the judge decides about who should pay the debt—they weren’t part of the divorce. If your name is on the account, they can still come after you, regardless of the decree.
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