Quick Answer: In Colorado, marital debt is divided under the state’s equitable distribution rules. This means the court divides marital debts fairly in divorce, not necessarily 50/50, based on factors such as when and why the debt was incurred and each spouse’s financial circumstances.

When couples divorce, much attention is placed on the division of marital assets. However, the division of marital debt is just as important. Understanding how marital debt is handled after separation and divorce can protect your financial future.

What is Marital Debt? 

In Colorado, marital debt generally includes any debt incurred by either spouse during the marriage and before the divorce decree is entered. Courts in Denver, Brighton, and throughout Colorado begin by determining whether a debt is marital or non-marital before deciding who will be responsible for paying it.

Marital debt typically includes:

• Credit card balances accumulated during the marriage
• Mortgages and home equity loans
• Auto loans
• Personal loans used for household or family expenses
• Tax liabilities from joint filings

Even if a debt is in only one spouse’s name, it may still qualify as marital if it was incurred during the marriage and benefited the household.

Importantly, marital debt after separation may still be considered marital if it was incurred before the divorce is finalized. Until a court issues a divorce decree, financial obligations acquired during the marriage may remain subject to division.

What Is Non-Marital Debt in Colorado?

Not all debt is subject to division. Non-marital debt is generally the responsibility of one spouse alone.

This often includes:

• Debt incurred before the marriage
• Debt incurred after the divorce decree
• Debt clearly used for one spouse’s separate, non-marital benefit

Student loans are frequently treated as non-marital, although courts may evaluate whether the education or loan proceeds benefited the marriage.

In many Denver divorce cases, disputes arise over whether certain charges truly benefited the household. When classification is contested, courts look closely at the timing, purpose, and use of the funds.

How Is Marital Debt Divided in Colorado?

Like the division of marital assets, the division of marital debt in Colorado follows the state’s equitable distribution standard. This means debt is divided fairly, not necessarily equally. A fair allocation does not always result in a 50/50 split.

For example, if one spouse accumulated debt without the other’s knowledge or used funds for strictly personal purposes, a court may assign that debt solely to that spouse.

When determining the division of marital debt, Colorado courts consider factors such as:

• Each spouse’s personal, professional, and financial circumstances
• The length of the marriage
• When and why the debt was incurred
• The overall division of marital assets
• Any child support or spousal support awarded
• Prenuptial or postnuptial agreements that address financial obligations

Judges examine both the timing and purpose of the debt. If a debt was incurred secretly, irresponsibly, or in connection with marital misconduct, the court may allocate it to one party. Conversely, a judge may assign a greater share of marital debt to the spouse with the greater ability to repay it.

Because every divorce is fact-specific, the division of marital debt is determined on a case-by-case basis.

How is credit card debt divided in a divorce?

In Colorado, credit card debt incurred during the marriage is generally considered marital debt and subject to equitable division. While it is often divided between both spouses, it is not automatically split 50/50.

If one spouse can show that certain charges were for personal, non-marital purposes, the court may assign that portion of the debt solely to that spouse. Likewise, even if a credit card is in only one spouse’s name, the other may still be responsible if the charges benefited the household.

When Am I No Longer Responsible for Marital Debt in Colorado?

You remain potentially responsible for marital debt until a Colorado court enters a final divorce decree. Debt incurred before the divorce is finalized may still be subject to equitable division, even if you are separated.

After the division of marital debt is ordered, you should remove your name from joint accounts whenever possible. Divorce agreements allocate responsibility between spouses, but creditors are not bound by those agreements. If your former spouse fails to pay a joint debt, your credit could still be affected.

If you are concerned about new debt being incurred or financial misconduct during the divorce process, consult an experienced divorce attorney as early as possible.

Can I Be Held Liable for My Spouse’s Debts?

You are generally not responsible for non-marital debt assigned solely to your spouse by the court, yet creditors are not bound by divorce agreements.

If your name is on a loan or credit account:

• A creditor may still pursue you for payment.
• If your ex defaults, your credit may be impacted.
• You may need to seek enforcement through the district court that handled your divorce.

If your spouse files for bankruptcy, it does not automatically eliminate shared debt. Bankruptcy protects the person who files, not necessarily the co-borrower.

Key points to understand:

• If your name is on a joint debt, creditors may still pursue you.
• A divorce decree does not prevent lenders from seeking payment from anyone legally responsible.
• Family court orders assigning debt between spouses do not override creditor rights.
• You may still be required to pay certain obligations if your spouse cannot.
• In some cases, you may need to explore bankruptcy yourself.

Filing jointly while still married may reduce some risk because the debt is handled together. However, the interaction between bankruptcy, divorce, and marital debt can be complex and depends on the specific circumstances.

Are All Marital Debts Discharged in Bankruptcy?

No. Not all debts are eliminated through bankruptcy. Certain obligations are considered non-dischargeable debt. meaning they typically survive the bankruptcy process.

Common examples include:

• Child support payments,
• Spousal maintenance
• Most student loans
• Certain tax debts
• Debts related to personal injury judgments

Because some obligations cannot be discharged, bankruptcy does not always eliminate financial responsibility following a divorce.

For more information about bankruptcy and divorce, read our related post on filing for bankruptcy during divorce.

Negotiating the Division of Marital Debt

The division of marital debt does not always need to be decided by a judge in Adams County or Denver County. Debt allocation can often be negotiated during divorce mediation, as part of a comprehensive divorce settlement, or through attorney-led negotiation.

A strategic approach to dividing marital assets and debt can help protect your long-term financial stability.

Do I Need a Lawyer for Marital Debt in Divorce?

The division of marital debt can have long-term financial consequences, just like the division of marital assets. Because debt allocation depends on detailed financial records, timing, and the specific circumstances of your marriage, having experienced legal guidance can make a meaningful difference in the outcome.

If you are navigating divorce in Denver, North Denver, Brighton, Adams County, or Denver County, the team at Tolison & Williams can help you understand your rights, evaluate your financial exposure, and work to protect your financial future. Request a free consultation to discuss your situation.

FAQs About Marital Debt in Colorado

Am I responsible for marital debt after divorce?

You may still be responsible if your name remains on the account. Even if a divorce decree assigns the debt to your former spouse, creditors can pursue anyone whose name is legally attached to the obligation. You may need to return to court if your ex fails to pay.

Does marital debt after separation still get divided?

Yes. Debt incurred before the divorce decree is entered may still be considered marital debt after separation and subject to equitable division. The key factor is whether the debt was incurred during the marriage and before the divorce is finalized.

Are student loans considered marital debt in Colorado?

Student loans are often classified as non-marital debt, especially if they were incurred before the marriage. However, courts may examine whether the education or loan proceeds benefited the marriage when making a final determination.

Can one spouse be assigned all of the marital debt?

Yes. Colorado courts may assign a larger share, or even all, of the marital debt to one spouse if it is considered equitable under the circumstances. This may happen if one spouse has a significantly higher income or if the debt was primarily incurred by one party.

What if my spouse hid debt during the marriage?

If hidden or undisclosed debt is discovered during divorce proceedings, the court may consider that misconduct when allocating responsibility. In some cases, a judge may assign that debt solely to the spouse who incurred or concealed it.

Additional questions? Connect with an experienced divorce attorney to learn more.