How Debt Is Divided in a Maine Divorce

Debt division in Maine follows the same equitable distribution principles that govern asset division under 19-A M.R.S. § 953. Marital debts are divided fairly — not necessarily equally — based on factors like who incurred the debt, what the money was used for, and each spouse's ability to pay after the divorce.

The most dangerous mistake people make is assuming the divorce decree fully protects them from joint creditors. It does not.

What Counts as Marital Debt

Any financial obligation incurred by either spouse during the marriage is generally marital debt, regardless of whose name is on the account. This includes:

• Joint credit card balances
• The mortgage on the family home
• Auto loans for vehicles purchased during the marriage
• Medical bills accumulated during the marriage
• Home improvement loans or lines of credit
• Tax liabilities from jointly filed returns

Debts incurred before the marriage are typically the separate obligation of the spouse who brought them in. Debts incurred after separation (but before the divorce is final) exist in a gray area — the court considers the purpose and whether the spending benefited the family.

How Courts Decide Who Pays

Maine judges evaluate several factors when allocating debt:

Who incurred the liability and why. A credit card used to buy groceries and children's clothing is treated differently than one used for gambling or personal luxury purchases during the marriage. Debts incurred for family living expenses are more likely to be shared equitably.

Each spouse's financial capacity. If one spouse earns $85,000 and the other earns $30,000, the court may assign a larger share of the debt to the higher earner — especially if the lower earner is also receiving fewer assets.

The overall distribution of assets. Debt allocation is considered alongside the asset split. A spouse who receives the house (and its equity) may also take on the mortgage. A spouse who receives a larger share of liquid assets may absorb more of the unsecured debt.

The Creditor Trap

Here is the critical reality that surprises many people: a divorce decree assigning debt to one spouse does not change the contract with the creditor.

If a credit card was opened jointly, both spouses signed the credit agreement. The credit card company does not care what your divorce decree says. If the spouse ordered to pay defaults, the creditor can:

• Pursue the other spouse for the full balance
• Report the delinquency on both spouses' credit files
• Garnish wages or levy bank accounts of either account holder

The divorce decree gives the non-assigned spouse a right to go back to court and seek enforcement or contempt against the defaulting spouse — but it does not prevent the creditor from coming after them in the meantime.

Protecting Yourself

Pay off joint debts at closing. The cleanest solution is to pay off all joint debts from marital assets at the time of divorce — using proceeds from a home sale, savings, or retirement account distributions. This eliminates the creditor trap entirely.

Refinance into individual accounts. If paying off is not possible, the spouse keeping the debt should refinance it into their name alone. This removes the other spouse from the credit agreement. For mortgages, auto loans, and consolidation loans, a refinance may be feasible if the retaining spouse qualifies on their single income.

Close joint credit cards. Even if the balance is assigned to one spouse, close the account to prevent new charges. The assigned spouse can transfer the balance to a card in their own name.

Student loans. Federal student loans taken out by one spouse are generally that spouse's individual obligation — they were never jointly held. Private student loans co-signed by both spouses follow the joint creditor rules above.

Financial Misconduct and Dissipation

Under the economic abuse provisions of § 953(1)(D), courts consider whether either spouse engaged in financial misconduct — running up credit cards out of spite, gambling away marital funds, hiding purchases, or deliberately destroying marital property.

If one spouse dissipated marital assets (spent them recklessly or destructively), the court can "add back" the dissipated amount to the marital estate and charge it against that spouse's share. This means the wasteful spouse effectively pays for their misconduct out of their portion of the property division.

Documenting financial misconduct requires bank statements, credit card records, and a clear timeline showing when the spending occurred and that it served no legitimate family purpose.

The Maine Divorce Financial Split Guide includes a marital debt inventory worksheet with columns for account type, balance, whose name is on the account, and recommended resolution method — plus a financial misconduct tracker for documenting dissipation.

See more Maine guides →