Marital Debt

The division of marital debt is another key issue in most divorces. Marital debt, like marital assets, is debt that is incurred during the course of the marriage. The exception to this general rule, is that debt incurred for a purpose solely outside of the marriage, such as charging hotel rooms to meet a boyfriend or girlfriend. I had a situation once where a husband purchased a boat, never took wife and kids out on the boat and spent all of his free time in the summer months on the boat. The Court decided that the debt on the boat was not a marital debt, as the purchase of the boat was actually a dissipation of marital assets, since its purpose was wholly outside of the marriage or family. Excessive spending, unless it is clearly for a non marital purpose is generally considered marital debt.