In Utah divorce, debt is divided equitably, not equally. Mortgages, credit cards, student loans, and medical bills are treated differently, and creditors can still pursue you even if your ex was ‘assigned’ the debt in the divorce case. Bankruptcy may help but brings complications. Learn how Utah courts divide debt and how to protect yourself in settlement.
Divorces in Utah are often less about dividing assets and more about dividing debt. I see this frequently: couples end their marriages without retirement accounts or vacation homes to fight over, but with a pile of credit cards, car loans, medical bills, and maybe a mortgage that feels more like a burden than a benefit. A Utah divorce court cannot erase debt. All it can do is decide which spouse is supposed to pay which portion of it. That is a sobering reality that too many divorcing people discover too late.
Utah’s Legal Framework
Utah law gives courts broad discretion in dividing debts and property. Utah Code § 81-4-204 authorizes the court to enter orders that are “equitable,” but equitable does not mean equal. Utah appellate law makes clear that judges are not bound to a rigid 50/50 formula. Instead, they weigh factors such as when and why the debt was incurred, who benefited from it, and each spouse’s ability to pay (see e.g., Sinclair v. Sinclair, 718 P.2d 396, 398 (Utah 1986)).
Whose Name Is on the Debt?
A common misconception is that if a debt is “in his/her name,” then that spouse alone is stuck with it. That is not how Utah divorce law works. If a credit card is in the husband’s name but was used to pay for groceries, rent, and utilities, the court may consider that a marital obligation. Conversely, if a debt was run up by a spouse for secret gambling, the judge may decide that is his/her responsibility alone. The bigger problem, however, is that creditors are not parties to the divorce case. Even if the decree provides that “husband must pay the VISA card balance,” the bank can still pursue the wife if the credit card agreement is in her name alone.
Different Types of Debt
Mortgage and other secured debts usually (but not always) “travel” with the asset. If one spouse keeps the home, he/she is typically assigned the mortgage. Courts may order refinancing to get the other spouse’s name off the loan, but refinancing is not always feasible. Car loans generally follow the car for the same reason.
Credit card debt is trickier. Courts try to divide it based on who benefited, but joint accounts are especially hazardous after divorce because creditors will pursue whoever is easiest to collect from.
Medical debt is generally treated as marital if it was incurred for the family’s benefit—childbirth, children’s medical care, emergencies. Elective or cosmetic procedures are more likely to remain the responsibility of the spouse who had the treatment.
Student loans in Utah are usually assigned to the spouse who incurred them. Courts reason that education is a personal investment, though there are exceptions. If the marriage as a whole reaped clear benefits from the degree—such as higher family income—judges sometimes spread the burden.
Practical Realities
Even the fairest-sounding decree cannot control creditors or change how creditors can legally and lawfully operate.
If your ex defaults on a debt or liability, your credit score may take the hit, and you may find collection agencies calling you. Divorce decrees typically include indemnity clauses, meaning your ex must reimburse you if he/she fails to pay a debt he/she was assigned. Enforcing that usually means returning to court, which is expensive and stressful.
Bankruptcy in the Divorce Context
Bankruptcy often comes up when debt outweighs everything else. Some couples file jointly before divorce to wipe out unsecured debt, making the property and debt division simpler. This can be a sensible move, but it is not always possible or wise. One spouse may refuse, or one may want to preserve his/her credit and thus be resistant to bankruptcy as well.
If only one spouse files for bankruptcy during or after divorce, it can shift burdens in unpleasant ways. A decree may assign him/her the debt, but if he/she discharges it in bankruptcy, creditors may still chase the other spouse. Obligations like child support and alimony cannot be discharged. Property settlement obligations may or may not be dischargeable, depending on whether the bankruptcy is under Chapter 7 or Chapter 13 and how the obligation is characterized.
Utah divorce judges cannot order bankruptcy, but they see its impact constantly. If you are staring at overwhelming debt while divorcing, you need to at least evaluate how bankruptcy interacts with your case. Pretending it is not an option does not protect you.
Settlement Considerations
When negotiating debt division, be brutally realistic. Ability to pay often matters more than fairness. If one spouse earns three times the other’s income, a straight 50/50 split may be a disaster. Think long-term: who can refinance, who can realistically pay credit card minimums, who will actually stay current. Remember that settlement gives you more control than rolling the dice with the court, and more flexibility than letting bankruptcy happen later without planning for it.
Conclusion
Utah law gives courts wide latitude to divide debt, but that does not mean debt division feels fair or easy. The truth is that dividing debt is often harder than dividing property. Bankruptcy may or may not play a role, but it is always part of the bigger picture. The couples who get through this process with the least collateral damage are the ones who face their financial reality honestly and negotiate with both divorce law and bankruptcy law in mind.
Utah Family Law, LC | divorceutah.com | 801-466-9277