How To Get Rid of Debt After a Divorce

When divorce happens, there are so many issues to resolve. If children are involved, establishing a new routine of care for them is most important. But intertwined in custody and property division is handling debt in the marriage.

Once the court files the final decree and orders, you might wonder how to get rid of debt after the divorce. The experienced Pittsburgh divorce lawyer at Pittsburgh Divorce & Family Law, LLC, can help you understand all of your options for dealing with debt before, during, and after divorce. We work hard to lessen your debt obligations during a time when your income might decrease because there are no longer two wage earners or due to paying support. And we can advise you on options to eliminate debt after divorce.

How Marital Debt Is Divided

When there’s a divorce, marital debt issues must be resolved. Sometimes parties reach an agreement, and other times the court must decide after a trial. Remember that state law may dictate certain divisions of assets and debts. In the end, the court is trying to find an equitable solution for all.

Categories of marital debt divided typically include:

Mortgage
Auto loan
Medical
Joint credit card

Our skilled divorce attorneys learn your financial picture so they can fight for a fair resolution of marital debt. By doing so, your post-divorce financial position will improve. Without a divorce lawyer on your side, you may have more marital debt than you should.

How Do I Solve Debt After My Divorce?

Once your divorce is finalized, and you know what debt exists, it’s essential to plan to resolve it. Besides working to reduce or eliminate your portion of marital debt, you may have debt that was your sole responsibility, such as a credit card in only your name or your school loans.

After divorce, many people find their finances more challenging. Instead of having two wage earners, there’s just one income to support your living expenses and pay the debt. You may also have child support obligations that you did not have previously.

Steps you can take to resolve debt post-divorce:

Use online budget resources. These programs can track income, debt, investments, and savings. For example, Mint allows you to link all your creditors to the account so that you can see how much you owe and when payments are due. By also linking your bank accounts, you’ll see your balances at all times. There is a budget feature, so at a glance, you know whether you are overspending in an area.
Talk to a credit counselor. If your credit suffered during the marriage, you may want to speak with a credit counselor for ideas on how to improve it. Just be careful that you select ones that have no fees, such as the non-profit GreenPath.
Refinance or renegotiate debts. Now that you know what debts are yours alone, you may be able to renegotiate your monthly payments with your creditors. Or, you may qualify to refinance or consolidate your loans.
Ask family or friends. If you have people that can loan you money to help with your debts, don’t hesitate to ask. Your family and friends understand that getting back on your feet after divorce is hard.
Liquidate assets. You may find that selling the newer car and eliminating the big payment is a good idea. Or if you ended up with the marital home, selling it and using proceeds to pay down debts.
Bankruptcy may be an option. No one wants to file bankruptcy, but you may need to consider it if there is no way to pay your creditors.

What if Your Ex-Spouse Fails To Pay

Having experienced divorce counsel that understands how to protect you from your ex-spouse’s failure to pay their debts is vital. A divorce agreement doesn’t trump a loan obligation under both names. So before finalizing the divorce, those obligations need to be changed, so they are only in the person’s name responsible for the future debt.

When joint debts remain, but your former spouse is supposed to pay it and doesn’t, you are responsible. The lender won’t care what the divorce decree says. That’s why it’s crucial to work with Pittsburgh Divorce & Family Law, LLC. We know how to protect you if the ex fails to pay.

FAQs About Divorce & Debt in Pennsylvania

Does Pennsylvania treat student loans as marital debt?

Sometimes. If the loan benefited both spouses—such as covering living expenses or housing while one spouse attended school—the balance may be deemed marital and subject to equitable division. Loans used solely for one spouse’s tuition after separation are more likely to remain that person’s separate responsibility.

How is IRS or state tax debt allocated in a divorce?

Tax liabilities accrued on joint returns are usually shared, even if only one spouse earned most of the income. Courts often apportion the debt based on each party’s ability to pay, and your decree can specify who will pursue an installment agreement or Offer in Compromise with the IRS.

What happens if my ex‑spouse files for bankruptcy after we divide the debt?

If a joint debt is discharged in your ex‑spouse’s bankruptcy, the creditor may still pursue you because the divorce decree does not bind third‑party lenders. You can return to the family court to seek reimbursement (indemnification) from your ex, but you remain liable to the creditor.

Can creditors sue me for medical bills my ex agreed to pay?

Yes. Hospitals and medical providers can pursue anyone listed as a responsible party, even if your divorce agreement assigns the bills to your former spouse. Protect yourself by demanding proof that your ex has transferred balances or set up payment plans before the decree is finalized.

Is debt from a spouse’s gambling or secret spending considered marital?

Courts may classify reckless or deceitful borrowing as “dissipated” marital assets. If you prove the debt was incurred for only one spouse’s benefit and without your knowledge, a judge can assign a larger share—or all—of that liability to the offending spouse.

How can I protect my credit score during divorce proceedings?

Order a free credit report from all three bureaus, freeze or restrict new credit on joint accounts, and set up transaction alerts. Closing or converting joint credit cards to individual accounts prevents additional charges that could raise your utilization ratio and harm your score.

Will refinancing the mortgage automatically remove my name from liability?

Only the lender can release a borrower. If the home is awarded to your ex, insist on a refinance or loan assumption that formally substitutes their name for yours; otherwise, late payments will still affect your credit and you might be sued in a foreclosure.

What if new debts surface after the divorce is finalized?

Pennsylvania law allows reopening a property‑distribution order when a spouse intentionally failed to disclose liabilities. Promptly document the newly discovered debt and consult your attorney to petition the court for reallocation or compensation.

Are co‑signed auto loans treated differently?

Because co‑signers share full responsibility, courts often direct the spouse keeping the vehicle to refinance within a set timeframe. If they miss that deadline, the decree can empower you to sell the car or take other measures to safeguard your credit.

Can joint credit card accounts be closed unilaterally before divorce?

Most issuers allow either primary cardholder to freeze further spending, but an outright closure might be blocked if a balance remains. Placing the account in “hardship” or “payment‑only” status can stop new charges while you negotiate debt division.

Is an indemnity clause enough if my ex stops paying?

An indemnity clause lets you sue your ex for reimbursement, but it does not halt collection efforts by the creditor. Whenever possible, remove your name from joint debts or replace them with new individual obligations to limit ongoing exposure.

Contact Pittsburgh Divorce & Family Law To Discuss Your Debt After Divorce Solution

One of the many issues to work through in a divorce is dividing marital debts. The worst thing you can do is to make an informal agreement in a do-it-yourself divorce. By working with our experienced divorce attorney, you know you’re paying what is fair and that you’re protected from your former spouse’s failure to pay. By implementing a few strategies for eliminating divorce debt, you can be on your way to financial wellness.