You might be sitting at your kitchen table tonight staring at a mountain of credit card statements and wondering how much of that debt will belong to you after your divorce.
It is a high-stakes question because unlike a simple 50/50 split, Michigan law prioritizes equitable outcomes, which means your financial future depends on how a judge assesses your specific situation.
Which debts are marital?
Generally, any debt incurred during your marriage is marital debt. It does not matter whose name is on the credit card or loan document. However, there are exceptions:
- Separate debt: This can include debt you had before you entered into marriage or debt you incurred after a divorce complaint was filed and the parties ceased cohabitating.
- Wasteful spending: If one of you spent money on gambling or an affair, a judge may label that as a separate debt.
- Student loans: These are often kept separate if only one of you received the education and the degree.
Because Michigan is an “equitable distribution” state, the judge’s goal is fairness rather than a strict 50/50 split; this means the judge has the discretion to shift debt based on your specific contributions and financial needs.
What happens when one does not pay their share
A common trap involves third-party creditors. A divorce decree is an agreement between you and your former spouse, not your bank. If the court assigns a debt to your former spouse and they default, the bank retains the legal right to pursue you for the full balance.
Your only remedy is to return to court to file a Motion to Enforce or a “Show Cause” hearing to seek indemnification for any payments you shouldered due to the other party’s noncompliance.
What to do while navigating the waiting period
Michigan law requires a waiting period before your divorce is final:
- 60 days for couples without minor children
- 180 days for couples with minor children ((which a court may shorten in specific cases of hardship)
This waiting period is your window to protect your credit. You may use this time to conduct “discovery”—the legal process of uncovering all hidden joint debts. To prevent your spouse from racking up new charges, you can ask the court for a “Mutual Restraining Order” order, which legally forbids either party from incurring non-essential debt during the proceedings.
By being proactive now, you avoid being caught by surprise. Contact us if you’d like to schedule a free consultation.