In Pennsylvania, both spouses are generally considered to be responsible for marital debt(s) regardless of whose name is on the debt and/or the party responsible for incurring the underlying obligation.
Generally speaking, and with some exceptions that are beyond the scope of this article, marital debt is considered under the appliable laws in Pennsylvania to be debt which is incurred by one and/or both spouses during and in the regular course of their marriage. More specifically, marital debt includes any debt(s) incurred between the date of marriage and the date of separation, and generally includes things such as mortgages, car loans, credit card balances, personal loans, and even potentially student loans or medical bills. Even if it is solely in the name of one spouse, if it was incurred during the marriage, it can be considered marital debt and both spouses may ultimately be determined jointly obligated to repay and/or contribute in part toward the debt.
Pennsylvania is what is known as an “Equitable Distribution” state, which essentially means that marital debt(s), as well as marital assets, are supposed to be divided fairly, or equitably, between the parties. Fairly and/or equitably, however, does not necessarily means equally, as the ultimate determination should be based upon the specific circumstances of each particular case, which includes, but is not necessarily limited to, the respective means available to each of the parties to the marriage to contribute toward the underlying debt(s), and to provide for themselves after divorce in a manner by which they were accustomed during the marriage.
Importantly, however, marital debt does not generally include the separate debt of a spouse that was incurred either before the marriage or after the parties have separated, unless the other spouse has agreed to be jointly responsible for the said debt, or taken other action in regards thereto by which it might be fairly argued that he/she should be jointly or partially responsible.
Notwithstanding the ultimate character of the underlying debt as the separate debt(s) of one spouse or the joint debt(s) of both spouses, there may be other circumstances and/or issues that present in a particular case whereby it may be properly argued, and the Court might ultimately agree, that fairness and/or the equites of the underlying case require that both spouses share in the repayment of certain debts that are the separate debt(s) of one spouse. Such circumstances can be as varied and distinct as the facts of any particular divorce case and the ability of your Divorce Attorney to creatively and effectively argue for and advocate the issues on your behalf.
One way by which parties may address the appropriate resolution of their debts in advance of their actual marriage is to have an agreement in writing prepared by an attorney, generally known and referred to in Pennsylvania as a “Prenuptial Agreement”, wherein they can specify how their respective and/or joint debts will be divided in the event of a divorce. This is an effective means by which to provide both clarity and potentially avoid the need to proceed through the formal process of Equitable Distribution through the Courts, which can often be an expensive, lengthy and mentally draining endeavor.
Regardless of the manner and/or means by which parties to a Divorce resolve the issue of liability for debts, it is important that both be cognizant and mindful of the fact that the underlying Creditors are neither privy to nor bound by any agreements between the parties relative thereto, nor any Orders that may be issued by the Court(s) as to whom is to be responsible and/or obligated to repay them. Accordingly, the underlying creditors will still look to and are well within their rights to initiate and pursue legal action, if necessary, to collect upon any debts against the spouse in whose name the underlying obligation has been incurred.
It’s important to remember that every divorce case is unique. Seeking legal advice from a qualified divorce attorney in Pennsylvania is crucial to understanding your rights and responsibilities regarding marital debts and to navigate the complexities of the divorce process effectively.
The Law Firm of DiOrio & Sereni, LLP is a full-service law firm in Media, Delaware County, Pennsylvania. We strive to help people, businesses and institutions throughout Southeastern Pennsylvania solve legal problems – and even prevent legal problems before they occur. To learn more about the full range of our specific practice areas, please visit www.dioriosereni.com or contact Robert B. George, Esquire at 610-565-5700 or at [email protected].
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