How Debt Is Divided In A South Carolina Divorce
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Frequently Asked Questions
Am I responsible for my spouse’s debt in South Carolina?
If the debt is marital — incurred during the marriage for the family’s benefit — you may be assigned a portion even if only your spouse’s name is on the account. Separate debts generally stay with the spouse who incurred them.
Does the divorce decree protect me from creditors?
No. Creditors aren’t bound by your divorce decree. If your name is on a joint account and your ex doesn’t pay, creditors can come after you. Refinancing and closing joint accounts are essential.
How are student loans divided in a South Carolina divorce?
Student loans taken out before marriage are generally considered separate debt. Loans incurred during the marriage may be treated as marital debt if the education benefited the household or increased the family’s earning capacity. The court will examine the timing, purpose, and circumstances surrounding the debt when determining responsibility.
When most people think about divorce, they think about dividing assets — the house, the savings, the retirement accounts. But debt is just as important. If you and your spouse carry credit card balances, a mortgage, car loans, or student loans, those obligations must be addressed as part of property division in South Carolina.
At Warner Law, we help clients in Columbia, SC understand that debt division is not separate from property division — it’s part of the same process. Here’s what you need to know.
Key Takeaway: Marital debt is divided using the same equitable distribution principles as marital property. The court considers who incurred the debt, what it was used for, and each spouse’s ability to pay.
Marital Debt vs. Separate Debt
Just like assets, debts are classified as either marital or separate — and the classification determines whether the court can divide them.
Marital Debt
Marital debt includes obligations incurred by either spouse during the marriage for the benefit of the family. Common examples:
- Mortgage on the family home
- Joint credit card balances used for household expenses
- Auto loans for family vehicles
- Medical debt incurred during the marriage
- Tax liabilities from joint returns
- Home improvement loans
Separate Debt
Separate debt generally stays with the spouse who incurred it and includes:
- Debt incurred before the marriage (including premarital credit card balances and student loans)
- Debt incurred after the date of separation (in some cases)
- Debt for purely personal purposes that didn’t benefit the marriage (such as gambling debts or spending on an extramarital affair)
Note: Just like with assets, the line between marital and separate debt isn’t always clear. The spouse claiming a debt is separate bears the burden of proof.
How Courts Divide Marital Debt in SC
South Carolina courts divide debt as part of equitable distribution under SC Code § 20-3-620. The same 15 factors that apply to assets apply to debts. Key considerations include:
Who Incurred the Debt?
If one spouse racked up $30,000 in credit card debt without the other’s knowledge, the court may assign more of that debt to the spending spouse.
What Was the Debt Used For?
Debt incurred for family necessities (food, housing, childcare, medical care) is more likely to be shared. Debt from luxury purchases or irresponsible spending may be assigned disproportionately.
Each Spouse’s Ability to Pay
The court considers income, earning capacity, and financial resources. A spouse with higher income may be assigned a larger share of debt — or the debt may be offset against other assets.
The Overall Property Division
Debt doesn’t exist in a vacuum. The court balances assets and debts together. A spouse who receives more assets may also receive more debt, and vice versa.
Common Types of Debt in SC Divorce
Mortgage Debt
The mortgage is usually the largest debt. If one spouse keeps the house, they typically assume the mortgage — but this requires refinancing to remove the other spouse’s name. Until refinancing occurs, both spouses remain legally liable to the lender, regardless of what the divorce decree says.
For more on handling the family home, see who gets the house in a SC divorce.
Credit Card Debt
Joint credit cards are straightforward — the balance is marital debt. Individual credit cards are trickier. If a card is in one spouse’s name but was used for family expenses, the balance may still be marital debt.
Tip: Close joint credit card accounts (or freeze them) as soon as possible to prevent either spouse from running up additional charges during the divorce process.
Auto Loans
Car loans on vehicles purchased during the marriage are typically marital debt. The spouse who keeps the vehicle usually assumes the loan — but again, you may need to refinance to remove the other spouse’s name.
Student Loans
Student loan debt is one of the most contested areas:
- Pre-marriage student loans → generally separate debt.
- Student loans incurred during marriage → may be marital debt if the education benefited the household (e.g., led to higher income)
- The degree itself is not divided, but the debt associated with it may be
Medical Debt
Medical bills incurred during the marriage for either spouse or the children are typically considered marital debt.
Tax Debt
Joint tax liabilities from returns filed during the marriage are marital debt. If one spouse committed tax fraud, the other may be able to claim innocent spouse relief with the IRS.
The Creditor Problem: Why the Divorce Decree Isn’t Enough
This is one of the most misunderstood aspects of debt division in divorce:
Your divorce decree only binds you and your spouse — not your creditors.
If your divorce agreement says your ex-spouse must pay a joint credit card, but they don’t pay, the creditor can still come after you. Your credit score can be damaged, and you can be sued for the balance.
How to Protect Yourself
- Pay off joint debts before or during the divorce if possible
- Close joint accounts to prevent new charges
- Refinance any loans that are in both names
- Include indemnification language in your divorce agreement — this gives you the right to take your ex back to court if they fail to pay
- Monitor your credit report after the divorce for missed payments on joint accounts
Balancing Assets and Debts
Smart divorce settlements consider the net picture — assets minus debts. For example:
| Spouse A Receives | Spouse B Receives |
|---|---|
| House (equity: $200,000) | Retirement accounts ($250,000) |
| Mortgage ($150,000) | Student loans ($25,000) |
| Net: $50,000 | Net: $225,000 |
In this example, the division looks unbalanced. An experienced attorney would negotiate to equalize the net values — perhaps by adjusting the retirement account division or other assets.
Credit Card Debt
Take Control of Your Debt — Talk to Warner Law
Debt division can make or break your financial recovery after divorce. At Warner Law, attorney Carrie Warner helps clients in Columbia, South Carolina develop comprehensive strategies that address both assets and liabilities — so you can move forward on solid financial ground.
Schedule a consultation today to discuss your debt division concerns.
This article is for informational purposes only and does not constitute legal advice. Every family law case is unique. Contact Warner Law to discuss your specific situation.
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My late father, Jan Warner, was an accomplished and widely known family law attorney and nationally syndicated author in South Carolina, so this area of law runs in my blood. It is all I have ever known, and I cannot imagine doing anything else.