Divorce doesn’t just divide what a couple owns. It also has to answer a harder question: who pays the mortgage, the car loan, and the credit card balances once the marriage ends? Michael Youngberg, a Denton marital debt lawyer with 12 years of experience, helps spouses answer it.
At Youngberg Law Firm, we help Denton County spouses sort out marital debt so they can leave the marriage with a clear, realistic financial plan. Michael looks at every balance, every account, and every name on every loan before your case moves forward.
Debt decisions made during a divorce can follow you for years, especially when a former spouse stops paying a joint account. If you are worried about what you owe and who will be responsible for it, call 940-498-2929. Our answering service is available 24/7.
How Does Texas Law Treat Debt in a Divorce?
Texas treats debt as part of the marital estate that a court divides when a marriage ends. Just like the house or a retirement account, balances taken on during the marriage are part of the picture the court looks at.
Community Debt and Separate Debt
Texas is a community property state. Under section 3.003 of the Texas Family Code, property either spouse holds when the marriage ends is presumed to be community property.
Debts follow a similar pattern. A balance built up during the marriage for the family’s benefit is commonly treated as a community obligation, while a loan one spouse carried into the marriage is typically treated as that spouse’s separate debt.
These labels are not always obvious. A credit card opened before the wedding but used for family groceries for 10 years raises different questions than a card opened last month for one spouse’s personal purchases.
The “Just and Right” Standard
Texas does not require a 50/50 split of debt. Under section 7.001 of the Texas Family Code, a court divides the estate “in a manner that the court deems just and right, having due regard for the rights of each party and any children of the marriage.”
That gives the judge room to assign more debt to one spouse when the facts support it, such as when one spouse ran up balances that the other did not know about.
When Are You Responsible for Your Spouse’s Debt?
In Texas, you are not automatically liable for everything your spouse owes just because you are married. Section 3.201 of the Texas Family Code makes a person personally liable for a spouse’s acts only in limited situations:
- Your spouse acted as your agent. If you authorized your spouse to borrow or sign on your behalf, you can be responsible. The law is clear that a spouse is not your agent solely because you are married.
- The debt was for necessaries. Texas requires spouses to support each other, and a spouse who fails to do so can be liable to whoever provides necessaries, such as food, shelter, or medical care, to the other spouse.
Outside those situations, the key questions are whose name is on the account and which property a creditor is trying to reach.
What Creditors Can Reach
Texas also sets rules for which property can be used to pay a debt. Under section 3.202 of the Texas Family Code, a spouse’s separate property is not subject to the other spouse’s debts unless both spouses are liable under other law.
Community property under one spouse’s sole management is shielded from the other spouse’s premarital debts and non-tort debts, unless both spouses are personally liable. All community property, however, can be reached for a tort either spouse commits during the marriage. These rules matter most when one spouse faces a lawsuit or collection action while the divorce is pending.
Common Types of Marital Debt
Most Denton County divorces involve several kinds of debt at once, and each one raises its own questions. The table below shows common debts and the issues that tend to come up.
| Type of debt | Common questions in a divorce |
|---|---|
| Mortgage or home equity loan | Will one spouse refinance, will the house be sold, and who pays in the meantime? |
| Auto loans | Does the debt go with the car, and can the loan be moved into one spouse’s name? |
| Joint credit cards | Should the account be paid off, and who is responsible for the remaining balance? |
| Individual credit cards | Were the charges for the family, or for one spouse’s personal use? |
| Medical bills | Do the charges count as necessaries that both spouses owe? |
| Student loans | Was the loan taken out before or during the marriage, and who benefited from the degree? |
| Business debts | Is the debt tied to a family business, and did either spouse sign for it personally? |
No two families carry the same mix of obligations. Sorting each debt into the right category is the first step toward a division that holds up after the decree is signed.
Options for Dividing Marital Debt
A court or the spouses themselves can divide debt in several ways. Your income, your assets, and what each of you can realistically pay will shape the right approach. Common options include:
- Selling assets to pay off debt. Using proceeds from a home or other property to clear balances before the estate is divided.
- Assigning debt along with an asset. The spouse who keeps the car keeps the car loan, and the spouse who keeps the house keeps the mortgage.
- Trading debt for a larger share of assets. One spouse takes on more debt and receives more of the property in return.
- Refinancing joint loans. Moving a joint loan into one spouse’s name so the other is no longer on the hook to the lender.
- Splitting remaining balances. Dividing leftover debts in a way the spouses or the court find fair.
Many settlements combine more than one of these approaches. We help you compare the options against your budget so the plan you agree to is one you can actually keep.
What Happens When Creditors Are Involved?
A divorce decree is an order between you and your former spouse. It does not change the contract you signed with a lender.
Why the Decree Does Not Bind Your Lenders
If both spouses signed a loan or credit card agreement, the creditor can still pursue either of you for the full balance, even if the decree assigns the debt to your former spouse. If your former spouse stops paying, the late payments can show up on your credit report, too.
That is why the decree should include a plan to refinance, pay off, or otherwise separate joint obligations by a set date.
Enforcing the Decree Against Your Former Spouse
When a former spouse does not pay a debt assigned to them in the decree, you can return to family court. Under section 9.006 of the Texas Family Code, the court can render further orders to enforce or clarify the property division in a divorce decree, without changing the division itself. We can review your decree and explain which enforcement options apply in your situation.
Steps to Protect Yourself From Debt During a Divorce
The choices you make while your divorce is pending can shape your finances long after it ends. Michael Youngberg encourages clients to be honest about every account from the start because hidden debt tends to surface and can hurt credibility with the court. Helpful steps include:
- Pulling your credit reports through the Federal Trade Commission’s free credit report guidance to find every account in your name
- Making a list of every loan, card, and balance, including who signed for each one
- Keeping up with minimum payments on joint accounts while the case is pending
- Saving statements that show when and why a debt was taken on
- Staying off social media, where posts about spending can become evidence
Each of these steps creates a clearer record, and a clear record makes it easier to negotiate a fair division or present your case to a judge.
Denton County’s Standing Order on Debt
Once a divorce petition is filed in Denton County, a county standing order applies to both spouses until the final decree is signed. Among other limits, it bars each spouse from:
- Taking on new debt, including credit card cash advances, other than reasonable attorney’s fees for the case or reasonable living expenses in line with the past six months
- Closing, restricting, or limiting credit cards, lines of credit, or financial accounts in the other spouse’s name or under the other spouse’s control
If the standing order does not fit your situation, the court can also issue temporary orders that address who pays the mortgage, car loans, and other bills until the case ends.
How Our Denton Marital Debt Lawyer Helps You
Youngberg Law Firm is a boutique family law practice that serves only Denton County, including Denton, Flower Mound, Highland Village, and Little Elm. We keep our caseload small on purpose, so each client gets real time and attention when the numbers get complicated.
- A plan from the first meeting. Michael Youngberg lays out a roadmap for your case at the start, including how debts will be identified and addressed.
- Careful review of every account. We look at when each debt was taken on, what it paid for, and whose name is on it.
- 12 years of experience. Michael Youngberg regularly handles divorces involving mortgages, retirement accounts, and mixed finances.
- Super Lawyers recognition. Michael Youngberg has been recognized by Super Lawyers.
- Local focus. We know the Denton County family courts and the local rules that apply from the day a case is filed.
We cannot promise a particular outcome, because every family’s finances are different. What we can offer is honest advice and a plan built around what matters most to you. To talk about your debts and your options, call 940-498-2929.
FAQs: Denton Marital Debt Lawyer
Is debt taken on after separation considered community debt in Texas?
Debt taken on after separation but before a Texas divorce is final can still be treated as part of the marital estate because Texas has no legal separation and the marriage continues until the decree is signed. What the money paid for, and who benefited, will shape how the court divides it.
Can I be reimbursed for paying community debt with my separate money?
Yes, a Texas spouse who used separate funds, such as an inheritance, to pay down community debt can ask the court for reimbursement under section 3.402 of the Texas Family Code. The claim applies when one marital estate benefited another in a way that would be unjust enrichment if not repaid.
Can a prenup or postnup decide who pays debt in a Texas divorce?
Yes, a valid Texas premarital or marital property agreement can set each spouse’s rights and obligations in property and how property is handled at divorce. Under chapter 4 of the Texas Family Code, those terms can shape how the spouses’ debts are assigned.
What happens if my ex files for bankruptcy after being ordered to pay a debt?
In a Chapter 7 bankruptcy, a debt your former spouse owes you under a Texas divorce decree generally cannot be discharged under 11 U.S.C. § 523(a)(15). Different rules apply in Chapter 13, and the lender can still pursue you if your name remains on the account.
Will my divorce show up on my credit report?
No, a Texas divorce itself does not appear on your credit report, and the decree does not change the accounts listed there. Joint accounts and their payment history remain tied to both spouses until the balance is paid off or the loan is refinanced into one name.
Talk With a Denton Marital Debt Lawyer
Debt can make a divorce feel heavier than it already is, but it does not have to stay that way. Youngberg Law Firm can help you understand what you owe, what your spouse owes, and how to leave the marriage with a plan you can manage.
Our office is at 2516 Lillian Miller Pkwy, Ste. 110, Denton, TX 76210. Call 940-498-2929 today, and let us help you protect what matters most.
