Divorce isn’t just about splitting property; it’s also about deciding who’s responsible for the debt. Credit cards, car loans, medical bills, and personal loans—things can get confusing quickly.
The good news? You don’t have to guess. Maryland has clear laws about how debt is managed, and understanding them can help you protect your finances and avoid surprises later.
At Billian Law, we’ve been helping Maryland families make these decisions for years. Here’s a simple and easy-to-understand explanation of how it works.
Marital vs. Non-Marital Debt: What’s the Difference?
Like assets, debt is divided into two categories: marital and non-marital.
Marital Debt
This includes any debt taken on during the marriage, no matter whose name is on the account that is used to acquire a marital asset. It can, but may not always include:
- Credit cards
- Personal loans
- Home equity loans
- Car loans
Non-Marital Debt
This includes debt that:
- You had it before getting married.
- You took on after separating.
- It is connected to property that is not from marriage, like an inheritance.
- Excluded by a prenuptial or postnuptial agreement.
If it isn’t related to the marriage, it usually remains with the spouse who created it.
How Maryland Courts Divide Debt
Maryland follows the equitable distribution principle, but this doesn’t always mean an equal 50/50 split. Instead, courts consider various factors to determine what is fair.
Courts look at things like:
- Why the debt was taken on
- Who benefited from the debt
- Each spouse’s ability to pay
- Each spouse’s financial circumstances
- How the debt ties into marital assets
For example, if one spouse secretly uses a $10,000 credit card for personal expenses, a judge might hold that spouse responsible for paying it. Additionally, even if a couple uses a credit card for groceries, home repairs, or kids’ expenses, that debt may not be considered marital.
Can You Be Responsible for Your Spouse’s Debt?
Possibly yes, depending on how and when the debt was taken on.
You may be responsible if:
- The debt is marital
- The debt was used for the acquisition of marital assets; or
- You both co-signed or opened the account.
You won’t be responsible if:
- The debt is non-marital
- The debt was taken out after the separation.
- Your spouse either hid it or used it for purposes outside the family.
Courts can decide who is responsible between spouses, but they cannot change the original contract with the creditor. This means that even if a judge orders your ex to pay a joint credit card, the credit card company can still go after you if payments are missed.
How to Protect Yourself Financially
Divorce can be emotional and financially challenging. Planning ahead can help prevent long-term stress. Here are some simple steps you can take to stay financially safe:
1. Create a List of All Debts
Joint and individual. Credit cards, loans, and medical bills. Get everything in writing.
2. Don’t Assume You’re Cleared
Even if your spouse agrees to pay a joint debt, creditors might still hold you liable.
3. Freeze or Close Joint Accounts
This prevents the addition of new debt during ongoing negotiations.
4. Use a Separation Agreement
A clearly written agreement can protect your rights and specify temporary financial responsibilities before the divorce is finalized.
5. Talk to a Family Law Attorney
An experienced attorney can explain which debts are truly marital, help negotiate fair terms, and ensure your long-term financial interests are protected.
Billian Law Is Here to Help
Sorting out debt during divorce can be stressful and overwhelming, but you don’t have to do it alone. At Billian Law, we help you understand your options, protect your financial future, and move forward with clarity.
If you’re thinking about divorce or it’s already going through it, contact us today. We’re here to support you through every stage.