Couples typically discuss the distribution of debts in Rhode Island Divorces near the outset. The conversation usually starts with children (if there are any) then quickly shifts to assets — the house, retirement accounts, vehicles, and possessions. But just as important is what many people prefer not to think about: marital debt.
Rhode Island Family Courts have long held that marital debts are divided using the same equitable-distribution principles that courts apply to marital assets. In other words, the court doesn’t simply split debts 50/50. Instead, judges determine what division is fair based on the factors in R.I. Gen. Laws § 15-5-16.1.
Below is a breakdown of how it works and what you need to know.
What Counts as “Marital Debt”?
A marital debt is generally any financial obligation incurred during the marriage, regardless of who signed for it, as long as it was used for a marital purpose.
This may include:
- Credit card balances
- Medical bills
- Personal loans
- Lines of credit
- Tax debts
- Home-equity loans
- Vehicle loans
- Business debts tied to the household
Debts taken on before the marriage or debts clearly tied to one spouse’s separate, non-marital conduct (e.g., gambling, hidden personal spending) may be assigned entirely to the person who created them.
The How of “Distribution of Debts in Rhode Island Divorce.”
Rhode Island uses equitable distribution, not equal distribution. That means the court looks at what is fair — not necessarily what is even. Judges rely on the same statutory factors they use when dividing assets under R.I. Gen. Laws § 15-5-16.1, including:
- Length of the marriage
Longer marriages often mean more blended finances and shared obligations.
- Conduct of the parties during the marriage
Wasteful, reckless, or irresponsible spending can shift the responsibility for debt toward the spouse who caused it.
- Contribution to the acquisition or preservation of assets
If one spouse took on debt to maintain the home or support the family, the court may view the debt as joint.
- Economic circumstances of each spouse
Judges consider income, earning ability, and future financial outlook when apportioning debts.
- Health, age, and employability of each spouse
These factors influence each party’s ability to pay.
- Any other factors necessary for equity
Rhode Island judges have broad discretion to reach a fair result but use these factors for RI divorce debt allocation.
Why RI Divorce Debt Allocation Matters
Poor RI divorce debt allocation can haunt someone for years after a divorce. Even if a spouse is ordered to pay a certain debt, creditors can still pursue either person if both names are on the account. That’s why it’s crucial to address the distribution of debts in Rhode Island divorce clearly and strategically during settlement negotiations.
An experienced Rhode Island divorce lawyer can help protect your credit, negotiate reasonable debt allocation, and ensure your financial future is secure as you move forward.
Kindly note that all postings on this site are for informational purposes only, are not legal advice and are not a substitute for legal advice from an experienced Rhode Island Divorce Lawyer who has advised you after being informed of the particular facts and circumstances of your case.
To understand your legal rights, options and alternatives and get good solid legal advice in your particular set of circumstances, Call (401) 632-6976 or contact us online and set up an affordable legal advice session.
