When couples decide to end their marriage in Missouri, one of the most challenging and often controversial issues is the division of debt accumulated during the relationship. Understanding how debt is handled in Missouri can help you navigate the financial aspects of divorce and plan for the future. 

At Columbia Family Law Group, our experienced attorneys are dedicated to helping clients navigate this complex process with clarity and fairness. We provide personalized guidance and support to ensure that your rights are protected and your interests are represented.

Missouri Is an “Equitable Distribution” State

Unlike community property states, Missouri follows a different approach when it comes to dividing marital property and debt. The principle of equitable distribution is used, which means that the court tries to achieve a fair division of all assets and liabilities, although it may not always be equal. This division is based on various factors outlined in Section 452.330 of the Missouri Revised Statutes.

It is important to note that only marital debts, debts incurred during the course of a marriage for the benefit of the household or joint purposes, are subject to division upon divorce. Debts acquired prior to or after legal separation typically remain the responsibility of the person who incurred them.

What Counts as Marital Debt?

Marital debt can include:

• Joint credit card balances
• Mortgages on the marital home
• Auto loans for family vehicles
• Medical bills incurred during the marriage
• Personal loans used for household expenses

Even if a debt is only in one spouse’s name, it may still be considered marital if it was used for the benefit of both spouses. For example, a credit card in one spouse’s name that was used to pay for household expenses, such as groceries, utilities, or childcare, may be considered a marital debt.

Conversely, if one spouse secretly accumulates debt for personal expenses unrelated to the marriage, such as gambling or extramarital affairs, the court may assign that debt only to the responsible party.

How Courts Determine Fair Debt Allocation

Missouri courts take into account several statutory factors when deciding how to divide marital debt. These factors include:

• The economic circumstances of each spouse.
• The contributions of each spouse towards the acquisition of debt.
• The value of non-marital assets assigned to each party.
• The conduct of the parties during the marriage, such as wasteful spending.
• Custodial arrangements for any children involved.

While a 50/50 split of debt is common, it is not always required. If one spouse earns significantly more than the other or was primarily responsible for incurring the debt, the court may decide to allocate a larger portion of the debt to that person in order to achieve a fair outcome.

Debts and Creditors: A Critical Distinction

It’s important to understand that, although a divorce may assign responsibility for joint debt to one spouse, creditors are not bound by court orders. If your name is on a loan or credit account with shared responsibility, the creditor may still pursue payment from you – even if your ex-partner was ordered to pay in the divorce settlement.

To protect your credit, it’s wise to:

• Close or refinance joint accounts
• Obtain indemnification clauses in your divorce agreement
• Monitor your credit report post-divorce

Our attorneys at Columbia Family Law Group, LLC, help clients navigate financial challenges and draft divorce agreements that include clear language on debt allocation and indemnification to minimize future liabilities.

Protecting Your Financial Future

Dividing marital debt is not just about fairness. It’s also about financial stability after a divorce. Unfair debt allocation can harm your credit, limit your ability to find housing or loans, and cause long-term stress.

That’s why personalized legal advice is essential. At our law firm, we don’t take a one-size-fits-all approach. With over 35 years combined experience in family law in Missouri, we analyze your entire financial situation, advocate for your best interests, and work towards a solution that supports your long-term stability.

Contact a Trusted Missouri Divorce Attorney Today

If you’re facing divorce in Missouri and concerned about marital debt, don’t try to handle it alone. The legal system is complex and the consequences are significant. Columbia Family Law Group LLC provides client-focused, budget-friendly legal representation with clear communication and strategic advocacy.

Our team includes a certified mediator who can help you find an amicable resolution or provide strong representation in a contested matter. We are here to help you reach a fair resolution to your debt and achieve peace of mind.
Contact us today to schedule a consultation.