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What happens to joint debt during a divorce?  

On Behalf of | Jan 14, 2025 | property division |

Remember that new living room set you bought together or the car loan you both signed? These debts don’t go away when you divorce. In Minnesota, how courts handle joint debt affects your money matters now and in the years ahead.  

What makes debt “joint” in Minnesota?  

When married in Minnesota, most debts you take on become joint debts, even if only one person signs for them. This means both spouses often share the duty to pay, no matter whose name is on the paper. The courts look at:  

  • When you took on the debt 
  • Why you needed the money 
  • Who got the benefits 
  • How much each person can pay 
  • If the debt helped the marriage or just one person 

How Minnesota courts spit joint debt  

Minnesota judges aim to split debts fairly between both people. They look at each person’s job, income and future money plans before deciding. Here’s what you need to know:  

  • Credit card debt stays with both names until someone pays it off 
  • House payments usually go to whoever keeps the house 
  • Student loans stay with the person who went to school 
  • Car payments go to whoever keeps the car 

Even if the court tells your ex to pay a debt, the bank can still come after you if your name is on it. That’s why you should:  

  • Shut down joint accounts right away 
  • Move shared loans to one name only 
  • Keep all court papers about who pays what 
  • Check your credit report often 

Quick action can save you from money troubles later. Talk to a divorce lawyer early about your joint debts. They can help you make a plan that works and keeps your finances safe after divorce. 

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