Tough financial situations can make people believe they are trapped in failing marriages. They are often afraid to get stuck with a house or a car that they couldn’t pay off, or even worse, an ex’s personal loans and credit cards. When divorce involves a high-earning spouse or a significant portfolio of assets, the fear of financial ruin can be even greater.
Even when debt feels overwhelming, it’s important to understand your options; they may be better than you expect. In Connecticut, divorcing spouses should not have to pay off an unfair share of debt from their exes. A skilled family law attorney is essential for pursuing the most favorable result in your case.
Connecticut Divorce and Property
If the parties cannot agree on a settlement in a Connecticut divorce, the court will divide all the property of the spouses between them according to an “equitable distribution.” This is a just and fair division, not necessarily an equal one. The law gives the court power to give one spouse “all or any part” of the other’s property, if necessary, to accomplish an equitable distribution.
In deciding how to divide the property, the court considers the following factors:
- the length of the marriage
- the causes for [the marriage’s end]
- the age, health, station, occupation, amount, and sources of income
- earning capacity
- vocational skills education, employability, estate, liabilities, and needs of each of the parties
- [and also] the contribution of each of the parties in the acquisition, preservation, or appreciation of their property
See Conn. Gen. Stat. § 46b-81(c).
In a divorce, a couple’s estate can be categorized as “marital property” or “separate property.” A judge will begin the equitable division of the marital property. This refers to the income and assets acquired during the marriage, typically including cars, real estate, and investments bought together or for both partners’ use.
Separate property includes:
- Gifts to one partner
- Inheritances left to one partner
- Income and assets acquired by one partner before the marriage
The court will often leave these to the separate owner. However, Connecticut judges can distribute one spouse’s separate property to the other if they find it necessary to reach an equitable result. Marital misconduct, such as flagrant infidelity or abuse, especially financial abuse, can cause a judge to consider redistributing separate property.
Debts and Equitable Division
In a divorce, a Connecticut court will view debts just as it views property. A court will begin from the principle that marital debts should be divided equitably, considering the length of the marriage and each partner’s status, as set out above in the law on property division.
Typical marital debts include:
- Auto loans
- Medical bills
- Credit card debt
- Utility bills and other joint household expenses
- Mortgages on property purchased together or family homes
Certain debts, such as one partner’s student loans or gambling losses, seem as if they should automatically be separate. But they will likely not count as separate if the partner incurred them during the marriage, and in some circumstances, possibly even if they did so beforehand. Without an attorney to present a strong argument to the court, the other partner is at risk of paying for expenses that they never approved or had any benefit from.
An attorney can work with you to present evidence to the court showing:
- your current financial situation
- the origin and purpose of the debt
- whether or not you had any benefit from the spending
With this information, the court can make a fair decision. Connecticut courts divide marital debts equitably based on the circumstances of each case. Generally, a party is not held responsible for debts that were not jointly incurred, did not benefit the marriage, or that would be inequitable to assign, given each spouse’s financial situation.
Some marital debts can be cleanly divided, as with credit card statements showing an itemized list of each partner’s expenses. Debts can also follow possession; the partner who takes the car, for example. Others are more difficult to comb through, like renovation bills or vacation expenses.
Even after the court divides responsibility for marital debts, creditors are not bound by the divorce order. If both names remain on the account, lenders may still pursue either spouse, which can harm your credit. Your attorney can help you determine when to rearrange financing agreements, where possible. This way, creditors can only reach the partner who should be responsible.
Debt and Dissipation of Assets
In some high-conflict divorces, one spouse may intentionally spend marital funds for improper purposes or solely to reduce the assets available for division. Connecticut’s automatic court orders are designed to prevent this type of improper spending once a divorce action has begun.
These orders prohibit both spouses from taking actions such as incurring unreasonable debts, borrowing against marital assets, or using credit improperly during the divorce process. Such conduct may constitute dissipation of marital assets, which the court can address when dividing property. While you generally will not be held responsible for debts or spending that unfairly reduced marital funds, it’s important to bring the issue to light during the divorce process so your attorney can advocate on your behalf.
A Fork in the Road
Divorce presents you with stark choices, especially when your financial situation is complex. You deserve a guide through this territory. Our Connecticut divorce attorneys at Klein & Babbitt offer strong, compassionate representation, working with you to protect your assets and secure a future for you and your family. Call us in Avon today at 860-735-0825 to schedule a free half-hour phone consultation.
