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How is debt divided in an Oregon divorce?

On Behalf of | Aug 23, 2019 | Family Law

When two people go through a divorce, they need to go through the process of dividing up assets. In Oregon, divorce laws dictate that this should be done equitably, meaning that the courts can decide on the way that assets should be distributed between spouses.

There is often a large emphasis on the division of assets and the importance of making sure that you gain a fair share. While this is indisputably crucial to your financial future, you should not forget that any debts that are defined as marital property will be subject to division, too.

What types of debts will be defined as marital debts?

Debts that occurred before the marriage became official will not be counted as marital debts. In addition, any debts that occurred as a result of investments made before the marriage took place will be the possession of the investor. However, all debts that occurred after marriage will likely be counted as marital debt.

How will debts be divided in Oregon?

Oregon courts will assess many factors when deciding how marital debts should be divided. They are likely to assign the debts to the spouse that they believe was responsible for acquiring them. They may also make sure that the higher-earning spouse takes a higher responsibility for the debts that were jointly acquired. The courts always aim to come to a decision that is the fairest possible outcome for all.

If you have debts in your marriage, and you are approaching divorce, it is important to consider the ways that this could affect your financial situation in Oregon. Make sure that you take early action to fully understand the law.