Navigating Divorce: Equitably Dividing Marital Debt in South Carolina

Posted by Leslie SarjiAug 08, 20230 Comments


Divorce is a challenging and emotional process, and one of the complexities it brings is the division of marital assets and debts. In South Carolina, as in many other states, marital debt is subject to equitable distribution. This means that any debts acquired during the marriage will be divided fairly and reasonably between both parties, ensuring an equitable outcome. This doesn't necessarily mean 50-50.  Let's explore some key considerations and strategies for dividing marital debt to help South Carolina families make informed decisions during this vulnerable time.

Understanding Marital Debt vs. Separate Debt:

Before diving into the process, it's important to distinguish marital debt from separate debt. Marital debt refers to debts accumulated during the course of the marriage, while separate debt applies to debts incurred individually before the marriage or debt that was not incurred for the benefit of the marriage, like debt accrued to take a paramour on vacation or to buy them jewelry or other gifts. Typically, separate debts will remain the responsibility of the party who incurred them, while marital debts will be divided.

Open Communication and Collaboration:

Divorce often involves heightened emotions, but finding a way to have open and respectful communication with your former spouse is crucial to achieve an agreeable division of debt. It may be helpful to engage professional mediators and divorce attorneys who can facilitate healthy discussions and help you negotiate the intricate process of debt division.

Creating an Accurate Inventory:

Begin by creating a comprehensive list of all outstanding debts to ensure no hidden liabilities or omissions. This includes debts like mortgages, credit card debts, auto loans, student loans, personal loans, and any other obligations accumulated during the marriage. Having a thorough inventory is the first step towards transparency and clarity, guiding you towards a fair and accurate distribution.

Evaluating Debt Responsibility:

South Carolina follows the principle of equitable distribution rather than the concept of community property. In determining how to distribute marital debt, several factors are considered, including each spouse's contribution to its accumulation, earning capacity, property division, and any existing prenuptial agreements. While there is no predefined formula, the court aims to divide the liabilities fairly between both parties, considering these contributing factors and ensuring neither party is disproportionately burdened.  Again, this doesn't necessarily mean a 50-50 split of debt. 

Debt Consolidation and Payment Strategies:

Once the debts are identified and considered, exploring various payment strategies can help ease the division process. Debt consolidation may be an option to combine several debts into one, potentially reducing interest rates and making payments more manageable. Selling assets to pay off debts, renegotiating loan terms, or assuming individual responsibility for particular debts are other potential strategies. Prioritizing which debts hold the highest interest rates or security implications is also crucial to develop a sound repayment plan.

Consult an Experienced Family Law Attorney:

While the court aims for an equitable distribution of marital debts, it is essential to consult with an experienced family law attorney who has experience in South Carolina divorce cases. They can guide you through the legal intricacies, protect your rights, and ensure you navigate the divorce process with confidence.

Call us now.  

Dividing marital debt during a divorce can be a complex and challenging process, but with open communication, collaboration, and understanding, South Carolina families can reach a fair and amicable resolution. Remember, seeking professional advice from a reputable family law firm is essential to safeguard your interests and successfully navigate the intricate path of divorce. By approaching the process with transparency and fairness, you can lay the foundation for a brighter future post-divorce.  Call us today at Sarji Law Firm at 843-722-5354 to schedule your case strategy session.