Washington State Divorce Debt Consolidation Laws
- Couples divorcing in Washington should know the consequences of debt division.credit cards image by Andrii IURLOV from Fotolia.com
An individual with a number of debts might consider debt consolidation to result in lower monthly payments. However, married couples considering divorce or already-divorced couples will learn that creditors' rights affect who must pay community debts incurred during marriage, regardless of the terms of the divorce. Spouses and ex-spouses should consult with attorneys licensed in Washington who can provide guidance regarding the family law consequences of debt and related financial problems. - The Washington State Bar Association (WSBA) provides an overview of divorce, called dissolution of marriage, under state laws and procedures. According to the WSBA, divorce includes division of a couple's assets and debts. The couple can either write a settlement agreement together or undergo a trial in family court, after which the judge will sign their divorce decree. The divorce judgment must include instructions on how to divide the couple's debt obligations and whether they will close any joint accounts. The family court must generally divide community debts fairly and assign any separate debts to the spouse who incurred them.
- Legal Voice, a women's rights organization serving the U.S. Northwest, cautions divorced spouses that they may still have responsibility for community debts assigned to the other party in a divorce judgment. If the spouse ordered to pay a debt does not do so, the creditor may be able to collect the money from the other spouse, regardless of their divorce judgment. The spouse who pays an ex-spouse's debt can later sue the ex-spouse for repayment or ask a court to charge the ex-spouse with contempt for violating family court orders. According to the Federal Trade Commission, spouses may incur negative feedback on their credit reports if they fail to pay creditors' claims regarding community debts.
- While the WSBA does not mention specific rules regarding debt consolidation as part of a divorce judgment, spouses should take care to follow Washington laws on creditors' rights. During debt consolidation, an individual generally combines several credit cards or loans into a single obligation and negotiates a lower interest rate. While debt consolidation may result in lower monthly payments and the creditor institutions may change, both spouses may still have liability for community debts. Ex-spouses should monitor the status of their community debts and ensure that the responsible party continues to pay.
