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Debt Division

Dividing debts is essential in a successful divorce. The alternative is to potentially leave the debts undivided and each party with the uncertainty of who will have to pay the debts.

Several things to consider in debt division:

A. No effect on third party creditors

The Court can order a division of debts in any manner that the Court deems appropriate. It is important to keep in mind that a Court order effective between a husband and wife is NOT necessarily effective against a third-party creditor. (In other words, a credit card company can go after you or your former spouse regardless of who was ordered to pay the debts.)

B. Income Taxes

The Court can also order either spouse to pay the parties’ income taxes thorough the date of divorce. This, also, is not effective as against the IRS. (The IRS can, in other words, come after either party for the unpaid income taxes).

Higdon, Hardy & Zuflacht, L.L.P. 12000 Huebner Rd #200 San Antonio, TX 78230 Telephone: (210) 349-9933 Fax: (210) 349-9988
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