How Is Debt Divided in A Utah Divorce Case?

If you are filing for divorce, you are probably thinking about how your debt gets divided. Your head must be exploding with many questions, like who will pay the mortgage? Will I have to split my spouse’s student loans? Who will make the car payments? Will my spouse pay my credit card debts? 

It’s natural to feel overwhelmed with all these questions. After all, you want to have a secure financial future once you part ways with your spouse. Before you file for divorce, you will need to understand how property and debt division works in Utah. This will prepare you for what’s ahead and protect your financial interests.

But first, let’s break down the grounds for filing for a divorce in Utah.  

When Can You File for Divorce in Utah?

Utah divorce laws recognize both no-fault and at-fault divorce. For a no-fault divorce, you and your spouse must provide irreconcilable differences and incompatibility as the cause. It means that you and your spouse have differences that cannot be resolved, and these differences have led to the breakdown of your marriage. This is often the ground for divorce in Utah. 

For at-fault divorce, you will have to list and prove one or more of the following reasons: 

1. Impotence: If one spouse was impotent (unable to perform sexually) at the time of the marriage and the other spouse was not aware of this condition, it can be grounds for divorce.
2. Adultery: You can file for a divorce if your spouse has been unfaithful.
3. Willful Desertion for More Than a Year: This can be a ground for divorce if your spouse has abandoned you for at least a year.
4. Habitual drunkenness: If your spouse drinks regularly and it has affected your marriage, you can file for divorce.
5. Cruel Treatment: This can be a ground for divorce if your spouse has been harming you physically and emotionally. 
6. Felony Conviction: You can apply for divorce if your spouse gets convicted of a felony. 
7. Willful Neglect: If your spouse willfully neglects their duties as a partner, you can file for divorce.
8. Incurable Insanity: Another rare ground for divorce is when your spouse is incurably insane.

Whether you file for no-fault or at-fault divorce, you and your spouse must be residents of Utah for at least three months before filing for a divorce. 

What is Considered Marital Debt?

When you file for a divorce, only your marital property and debt are subject to Utah divorce laws, not your separate property or debt. Specifically, marital debt includes any debt you or your spouse took on during your marriage. It can be credit card debt, mortgages, car loans, student loans, personal loans, and other financial obligations you signed up for while married. Separate debt is any debt you have had before the marriage or after separation. 

For example, if you took out a personal loan to pay for a vacation while married, that loan would likely be considered marital debt. However, if you had a student loan before you got married, that would be considered separate debt. While your spouse may have to split a share of the personal loan, they might not necessarily have to shoulder your student loan.

How Is Debt Divided in a Utah Divorce Case?

Marital debt division in Utah is equitable. This means your debt will get divided fairly but not always equally. When deciding how to distribute the debt equitably, the court takes several factors into account, such as: 

1. The Length of Your Marriage: The Longer you’ve been married, the more complex your marital debt division will be as your joint financial responsibilities accumulate over time. You might have joint credit cards, bank accounts, mortgages, car loans, and personal loans. However, couples who had been married for less than 2-3 years typically don’t have as much marital debt.

2. Each Spouse’s Income and Ability to Pay: The court looks at each spouse’s earning capacity and financial stability when dividing debt. Your spouse may get a higher share of the debt if the judge thinks it’s fair.  

3. Who Benefited from The Debt: If one spouse benefited more from a particular debt, the court might assign a larger portion of it to them. For instance, if your spouse took out a student loan while you were married and it helped them land a better-paying job, the judge may assign a larger portion of this debt to them.

4. Each Spouse’s Financial Contributions: The judge considers each spouse’s contributions to the marriage, both financial and non-financial when determining marital debt division in Utah. If you were involved in homemaking or child rearing, the judge might consider this non-financial contribution when dividing the debt.

How Do I Protect My Finances When Getting Divorced?

You cannot afford to gamble your future if you are getting divorced and you know there is an outstanding debt. If you make mistakes or accept an unfair share of marital debt, it can quickly drain your finances and put your future on the line. 

One of the best ways to protect your financial interests is to hire a competent divorce attorney in Utah. A reliable divorce lawyer can help you understand your rights and obligations, protect your interests, and ensure you sign up for a fair division of marital debt. 

You should also: 

• Gather Your Financial Documents: Collect all your records, including bank statements, tax returns, debt statements, mortgage documents, and other relevant financial information. Keeping these documents ready will help your attorney build a strong case.

• Monitor Your Credit Score: Track your credit score to identify any issues early. Look out for any unusual changes or new debts. If your spouse rakes up new debt, it might affect your property and debt division in Utah. 

• Open Individual Accounts: When you decide to file for divorce, open new individual accounts and credit cards. It’s best to cancel your joint credit cards as soon as possible. This protects you from unnecessary debt and makes the process smoother for everyone.

Conclusion 

Dividing debt in a divorce can be complicated, but understanding how Utah divorce laws work can help. Remember, Utah follows the principle of equitable division, which means “fair” and not necessarily equal division of your debt. To protect your financial interest, consider hiring a skilled attorney as soon as possible.

At Henriksen & Henriksen, we understand how property and debt division works in Utah. We are here to protect your rights and help you negotiate a fair settlement. Contact our experienced Utah divorce attorney today for a free consultation.