How Is Debt Divided in a Connecticut Divorce?

What Types of Debt Are Considered in a Connecticut Divorce?

In Connecticut, all debt, regardless of whether incurred during or before the marriage, are generally considered marital debt. This includes credit card debt, mortgages, car loans, and personal loans, regardless of whose name is on the account. Even if only one spouse signed for the debt or used the credit, it is still deemed “marital” and subject to division in some manner.

Connecticut is an “equitable distribution” state. This means that while equitable factors can be considered by a court, such as whether a certain debt existed prior to the marriage, there is no law requiring pre-marital debt to remain the responsibility of the individual who incurred it. Additionally, for purposes of asset and debt valuation, Connecticut law requires the same to be determined as of the date of divorce – not the date of separation. Debt incurred after the separation or filing date, but before the divorce is finalized, might be treated differently. This is especially true if the debt was not for the benefit of both spouses or the family. More times than not, though, all debt, even when accumulated following the date of separation, is allocable between the parties.

How Does the Court Decide Who Pays Debt?

The court considers various factors to determine what is the equitable distribution of a couple’s debt. These factors include the length of the marriage, the causes for the dissolution of the marriage, the age, health, occupation, income, and employability of each spouse, and the needs of any children involved.

While the court can also examine each spouse’s contribution to the accumulation of debt, that is certainly not a dispositive criterion. Additionally, the court may take into account the future earning potential of each spouse. A spouse with higher earning potential might be expected to shoulder more of the debt burden.

It's important to note that equitable distribution does not always mean a 50/50 split. The court is only tasked with being “equitable,” which might result in any number of outcomes depending on the mood of the judge. It is for this reason that we view trial as a last resort, and encourage the use of alternative dispute resolution approaches to divorce whenever possible.

If you have additional questions, or you are looking to protect your hard-earned assets in a divorce, please don’t hesitate to contact the Law Offices of Eric R. Posmantier, LLC today. We stand ready to effectively represent you and your interests, every step of the way.