Divorce and Debt in Washington State

Debt is one of the most complicated and painful parts of ending a marriage

For many couples, financial strain begins long before the divorce is filed. For others, the fear of being stuck with a spouse’s credit cards, loans, or hidden spending becomes the biggest obstacle to taking actoin.

In Washington, debt is treated much like property: it must be divided “just and equitably” under RCW 26.09.080. But equitable does not always mean equal, and the purpose of a debt matters just as much as the amount. Creditors, however, are not under the jurisdiction of the court when you file divorce. For them, they extended credit to both spouses. That means any division of debts must take into account feasibility for repayment or even discharge through bankruptcy.

At Pacific Northwest Family Law, we help clients understand their financial exposure, prevent unnecessary damage, and create a path toward stability. Whether the issue is joint credit cards, hidden accounts, bankruptcy, or recovering from years of financial imbalance, we guide you with clarity, structure, and a plan for long-term recovery.

Divorce can end the marriage. With the right strategy, it can also end the financial chaos.

➡ For more general information about divorce, visit our page Divorce in Washington State

Debt Liability & Responsibility

Does divorce protect me from my spouse’s debt?

Not automatically. A Washington court can divide debts equitably under RCW 26.09.080, but creditors are not bound by a divorce decree and may still pursue anyone whose name is on an account. A common and costly mistake is trying to “load” debt onto the other spouse; when that spouse inevitably struggles to pay, both parties’ credit and finances suffer. A better approach is coordinated planning—refinancing, closing accounts, or restructuring debt—to ensure long-term stability rather than shifting the problem.

➡ Learn more about how property is divided at Property Division in Divorce

How does Washington divide marital debt?

Washington Courts treats most debts incurred during the marriage as community obligations, meaning both spouses are generally responsible regardless of whose name is on the account. The court does not simply assign debt to whoever “caused” it. Instead, judges look at timing, purpose, and overall fairness under RCW 26.09.080.

Debts tied to ordinary household needs are usually shared, while unusual or harmful spending—such as gambling, hidden credit lines, or clear financial misconduct—may influence how the court allocates responsibility. Ultimately, debt division is based on the entire financial picture, not one disputed purchase.

Can I be held responsible for debts my spouse created without my knowledge?

Possibly. Washington law presumes debts incurred during marriage are community obligations, especially if they supported household needs. However, hidden or wasteful spending (gambling, affairs, undisclosed credit lines) may be assigned to the spouse who created the debt when fairness requires it.

What happens to joint credit cards and loans after divorce?

A divorce decree can assign responsibility, but creditors still view joint accounts as binding on both spouses. The only way to fully separate liability is to close the account, refinance it, or replace it with an individual account. But this will often require the court to approve such action even if it is by agreement. Make sure you coordinate with your attorney to make sure you don’t cross a line when addressing debt payments.

Can new debts made after separation be assigned only to the spouse who created them?

Often yes, but not always. The allocation of debt in a divorce depends a lot on the timing and purpose of the debt. If, for example, you do not file anything with the court and are informally separated to try it out before moving forward, it is less likely to be considered a separate debt. But if new debts were made after filing and serving a divorce petition, it is more likley that the court would assign to the person who took out the debt.

What if my spouse wasted money on gambling, affairs, or addiction?

Courts can consider “waste” or dissipation of community assets when dividing property and debt. If one spouse used marital funds for personal purposes that did not benefit the family, the court may assign that debt to them or compensate the other spouse through asset division. Proving dissipation requires evidence—bank statements, patterns of behavior, or corroborating documents—so early investigation is important.

Who is responsible for joint credit card debt after divorce?

Courts divide the debt, but creditors treat both names as responsible until the account is closed or refinanced. Clear deadlines and enforcement tools in the final orders are essential to prevent long-term credit damage.

What happens to medical debt in a divorce?

Medical bills incurred during marriage are usually community debts, even if tied to one spouse. Courts consider insurance coverage, income, and fairness when dividing responsibility.

Does student loan debt get split in a divorce?

Loans taken for one spouse’s education are often treated as that spouse’s separate responsibility. However, if the loan supported household expenses, the court may divide it. The purpose and timing of the debt drive the outcome.

Can creditors pursue me even if the court ordered my ex to pay the debt?

Yes. A divorce order binds spouses, not lenders. If your ex misses payments on a joint account, your credit can be affected. Enforcement options exist, but proactive refinancing or account closure provides the strongest protection.

Misconduct, Hidden Debt & Financial Abuse

What if my spouse maxes out credit cards before the divorce?

Courts examine the timing and purpose of the spending. Charges made for personal benefit, retaliation, or waste can be assigned to the spouse responsible. Early financial monitoring and thorough documentation help your attorney identify and address dissipation of assets.

What if my spouse takes out secret loans?

Undisclosed borrowing during separation raises concerns about financial misconduct. Courts can assign secret debt to the responsible spouse if it did not benefit the family in any way. Accurate statements and early investigation help prevent unfair outcomes.

What counts as financial abuse during a divorce?

Financial abuse includes controlling access to money, opening credit without consent, hiding accounts, or sabotaging a spouse’s financial independence. It may affect support, property division, and even protection order considerations.

What happens if my spouse hides debt during the case?

Hidden liabilities undermine fairness. Courts may reopen portions of a case or adjust final orders if concealed debt comes to light. Full disclosure is required and can be enforced through discovery and financial investigation.

Bankruptcy & Divorce

Should I file bankruptcy before or after divorce?

Timing affects property division, automatic stays, and dischargeability. Bankruptcy can temporarily pause divorce proceedings, but support obligations cannot be wiped out. Coordination between divorce and bankruptcy counsel is essential to avoid unintended consequences. Regardless of timing, bankruptcy will often require the participation of both spouses to wipe out any debt.

What happens if only one spouse files bankruptcy during the divorce?

The bankruptcy may pause certain financial aspects of the divorce, but it does not eliminate support obligations. Property division can become more complex because the bankruptcy estate may control certain assets.

Can we file bankruptcy together if we are separated?

Separated spouses may file jointly. Whether that makes strategic sense depends on debts, property, and timing. Joint filing may reduce costs but requires cooperation.

Can bankruptcy erase divorce-related obligations like support or property division?

Generally no. Domestic support obligations (child support and maintenance) and most property division awards are not dischargeable. Bankruptcy may restructure other debts but does not replace the divorce court’s authority. Child support and spousal maintenance will take priority over other debts when in the bankruptcy court.

How does bankruptcy affect divorce settlements?

It can delay property division, limit temporary court orders, or affect how assets are valued. Coordinated planning is critical to prevent conflicts between bankruptcy law and family law.

Joint Accounts, Credit & Recovery

Should I close joint credit cards before filing for divorce?

Closing or freezing accounts reduces risk, but timing matters. Any action before filing will be scrutinized. And if you are suspected of shutting off your soon to be ex from financial resources, that will come back to bite you. Coordinating with your attorney prevents claims of financial abuse or improper self-help.

How can I protect my credit during and after divorce?

Monitor your credit reports, close joint accounts responsibly, and establish individual credit. Prompt attention to mortgage and loan obligations prevents lasting damage. Your final orders should include deadlines and enforcement tools for debts tied to your ex-spouse.

Will my credit score drop after divorce?

It often does temporarily, not because of the divorce but because accounts change, debt loads shift, or payments are disrupted. Recovery depends on consistent repayment and strategic financial planning.

How long does it take to rebuild credit after divorce?

Most people see improvement within 6–24 months with budgeting, timely payments, and reduced reliance on joint credit. A financial advisor can help establish a long-term plan.

How can I build credit in my own name after divorce?

Start with individual credit cards, small installment loans, or secured cards. Your attorney can help structure the divorce orders to protect your income and reduce debt exposure so credit rebuilding is smoother.

Property & Housing Intersection

Can I keep the house if I can’t refinance the mortgage after divorce?

Usually not long-term. Courts typically require refinancing to remove the other spouse’s liability. If refinancing is impossible, a sale may be ordered to protect both sides from ongoing exposure.

➡ Learn more at our page The Family Home and Divorce

How does mortgage debt affect asset division?

Equity and debt are considered together. The spouse keeping the home usually offsets the other’s share of equity or takes additional debt. Courts evaluate feasibility, income, and creditworthiness when deciding fair outcomes.

What happens to rental property debt or HELOCs during divorce?

Debt tied to real estate follows the property unless fairness requires otherwise. Accurate valuation and documentation help determine how equity, liability, and income should be divided.

Post-Decree Issues

How do I enforce debt-related terms in my divorce order?

You can pursue contempt, wage withholding, lien placement, or motions to compel compliance. Most final divorce orders include a “hold harmless” provision. That means that if a creditor attempts to collect from you despite the debt being assigned to your ex-spouse, you can bring them back to court and seek a judgment against them. Bear in mind, however, that the final division of debt must be realistic because even if your ex-spouse is supposed to pay certain obligations, if they can’t do it the judgement will be worthless.

What happens if my ex fails to refinance a joint debt by the court-ordered deadline?

Courts may order a sale, modify obligations, or impose penalties. Enforcement tools include contempt and appointment of a special master to complete paperwork.

Can I remove my ex’s name from shared accounts after divorce?

Only through refinancing, account closure, or lender approval. Divorce orders cannot compel a bank to alter the contract. So you must work through the courts to remove your name from shared obligations.

What are common financial mistakes people make after divorce?

Leaving joint accounts open, ignoring tax consequences, failing to track deadlines for refinance or sale, and overextending financially while adjusting to a single-income household.

Moving Forward with Stability and a Financial Plan

Debt doesn’t disappear in divorce, but it also doesn’t have to define your future. With the right analysis and a strategic division of responsibility, you can protect your credit, your assets, and your long-term financial health.

At Pacific Northwest Family Law, we help you take control of the numbers:
• identifying which debts are community or separate,
• negotiating fair division under Washington law,
• closing or refinancing risky accounts, and
• building a recovery plan that lasts beyond the final order.

If you’re facing divorce and worried about debt, you’re not alone—and you’re not without options. When you’re ready to take the next step, we’ll help you protect your finances, rebuild with confidence, and start the next chapter on solid ground.

Reviewed by Attorney Zachary C Ashby, Pacific Northwest Family Law, November 2025