View Our Blog
Case Evaluation

Fill out the form below to get in touch with one of our attorneys.

Send
Meet Our Attorneys
Office Locations
Primary Location
A
304 North High Street West Chester, PA 19380
Map It
Secondary Locations

These locations are available by appointment only

B
2 Penn Center Plz, Ste. 200 Philadelphia, PA 19102
Map It
C
135 East State St. Kennett Square, PA 19380
Map It
D
600 West Germantown Pike Plymouth Meeting, PA 19462
Map It
E
1489 Baltimore Pike Ste 221 Springfield, PA 19064
Map It
F
1060 First Ave, Ste 400 King of Prussia, PA 19406
Map It
G
101 Lindenwood Dr, Ste 225 Malvern, PA 19355
Map It
H
150 N. Radnor Chester Rd Ste. F200, Radnor, PA 19087
Map It
I
313 West Liberty St., Ste 341 Lancaster, PA 17603
Map It

Financial Debt and Divorce

When a marriage is terminated, marital property is divided by equitable distribution in Pennsylvania. Usually, people are most concerned about receiving a fair share of their assets. However, the debts of both spouses, accumulated both separately and together during the marriage, will also be divided and assigned. Debt is divided the same way property is divided.

Pennsylvania Divorce With Debt Lawyer

If you or your spouse has substantial debt, or if you have joint debt, it's important to understand who will be stuck with the bill after the divorce. Our team of West Chester divorce lawyers at Ciccarelli Law Offices will seek a result that will not leave you with an unfair portion of the family's indebtedness after a divorce.

Call us today at (877) 529-2422 for a free consultation to discuss your divorce. You can meet with an experienced divorce attorney from our firm at one of our convenient meeting sites in West Chester, Springfield, Lancaster, Philadelphia, Plymouth Meeting, Kennett Square, Malvern, King of Prussia, and Radnor.

We are proud to serve clients throughout Philadelphia and Southeastern Pennsylvania, including Chester County, Montgomery County, Lancaster County and Delaware County.


Information Center on Financial Debts After Divorce


Which Financial Debts are Considered for Divorce in Pennsylvania?

The most important factor in determining whether debt is marital property is when the debt was incurred. Debt incurred before the marriage is generally not considered marital property, and will stay with the spouse that had it before the marriage. Financial obligations that were incurred during the marriage is marital property, and will be divided by equitable distribution.

If, for instance, your spouse signed up for a credit card during the marriage and ran up a $10,000 bill, a significant portion of the bill could be assigned to you in the divorce, even if you didn't use the credit card. But if your spouse got the credit card before the marriage, had a $5,000 balance when you got married, and then continued to use the card to ring up another $5,000, then $5,000 would be separate property and $5,000 would be considered part of the marital estate.

Student debt can also be part of the marital estate. If Spouse A goes to law school before the marriage and accumulates significant student debt, then the debt will not be part of the marital estate. However, if Spouse A goes during the marriage, then Spouse B could wind up being on the hook for a significant portion of the debt.


Back to top

How Debt is Divided in Chester County?

Financial obligations are divided the same way property is. The Commonwealth of Pennsylvania practices equitable distribution, which means that the court makes a decision to divide the marital estate in a way that is fair. This is not the same as equal distribution. The court looks at every item and divides it accordingly. It can, therefore, look at each debt and make a different division.

There are certain factors, under law, that the court may take into account when dividing marital debt. They include:

  • The length of the marriage.
  • The age, health, liabilities, needs, estate and employability of each spouse.
  • The contribution of one spouse to the education, training or increased earning power of the other spouse.
  • The sources of income for each spouse.
  • The contribution or dissipation of each spouse in the acquisition, appreciation and depreciation of the debt.
  • Whether either spouse will serve as custodian of any children.

The court may use any of these factors, or any other factor, when determining a fair distribution. For instance, when determining who should have to pay back a credit card bill, the court could look at which spouse contributed the most to creating that bill. Or, the court could determine that Spouse A, who makes less money than Spouse B, is less able to pay the bill, and therefore assign the larger portion to Spouse B.

The court cannot use fault as a factor in determining equitable distribution. So, even if one spouse was responsible for the marriage dissolving through infidelity or desertion, it will not make a difference in who is stuck with the debt.


Back to top

Understanding Financial Obligations After a Pennsylvania Divorce

It's important to take everything into consideration when pursuing marriage termination, and debt is certainly one of the most important issues. Our West Chester divorce lawyers at Ciccarelli Law Offices can help you avoid an unfair share of the debt. We represent spouses throughout Downingtown, Phoenixville, Landenberg, Villanova, Norristown, Media, Ardmore, Swarthmore, Newtown Square, Radnor, Devon, Berwyn, Greater Philadelphia, and nearby towns. Call us today at (877) 529-2422 for a free consultation about your legal options.