How Are Debts Divided in South Carolina Divorce

Debts Get Divided Just Like Assets

In South Carolina, the equitable distribution process doesn't stop at assets. Under S.C. Code Ann. § 20-3-620(B)(13), the Family Court has explicit authority to identify, value, and apportion all marital debts incurred during the marriage. The same 15 statutory factors the court uses to divide property also govern how debts are allocated.

Marital Debt vs. Non-Marital Debt

Marital debt includes any debt incurred by either spouse after the date of marriage and before the filing of marital litigation — regardless of whether the account is in one name or both names. Your spouse's credit card in their name alone, used during the marriage, is still marital debt.

Non-marital debt includes debts incurred before the marriage or after the filing cutoff date. Student loans taken out before the wedding are typically non-marital. Debt your spouse racks up after you file the complaint is generally treated as non-marital in the divorce, although a joint account or loan can still leave both spouses liable to the creditor.

The classification isn't always clean. A credit card opened before the marriage that was used heavily during the marriage may have both non-marital (pre-wedding balance) and marital (during-marriage charges) components.

How Courts Decide Who Pays What

South Carolina courts look at three main considerations when allocating debt:

Who incurred the debt. If one spouse ran up $30,000 in credit card debt on luxury purchases or an extramarital affair, the court can assign 100% of that debt to them.

What was the purpose. Debt incurred for the family's benefit (mortgage, car loans, medical bills) is typically shared. Debt incurred for one spouse's sole benefit (gambling losses, personal luxury spending) is more likely assigned to that spouse.

Who benefited. Even if one spouse took out the loan, if both spouses benefited — a home improvement loan that increased the house's value, for example — the court treats it as shared marital debt.

The Creditor Catch

Here's the reality that surprises most people: a divorce decree does not bind third-party creditors. Your settlement agreement or court order says your ex-spouse is responsible for a particular credit card balance. But the credit card company wasn't a party to your divorce. If the account is in your name (or jointly in both names) and your ex stops paying, the creditor comes after you.

Your credit score takes the hit. The creditor can sue you for the balance. A common enforcement route is to go back to Family Court and file a contempt motion against your ex — which can add attorney fees and take months.

This is why debt allocation strategy matters at least as much as asset division. The safest approach is to pay off joint debts from the marital estate before the divorce is finalized. If that's not possible, your settlement agreement should include indemnification language — hold-harmless clauses that give you a contractual basis to seek enforcement if your ex defaults.

Protecting Your Credit During Divorce

Pull your credit reports. Before you can divide debts, you need a complete picture. Pull all three bureau reports (Equifax, Experian, TransUnion) to identify every open account — you may find accounts you didn't know existed.

Freeze or close joint credit cards. Contact each joint credit card issuer and request that the account be frozen (no new charges) or closed. Some issuers will freeze the account for new purchases while allowing the balance to be paid down. This prevents your spouse from running up charges during the separation that you'll be jointly liable for.

Open individual accounts. Establish credit in your own name if you don't already have it. You'll need independent credit for post-divorce housing, vehicles, and other expenses.

Monitor joint accounts. Until joint accounts are fully resolved, keep an eye on balances and payments. If your spouse misses a payment on a joint account, you want to know immediately so you can make it yourself and protect your credit while pursuing reimbursement.

Document everything. Keep records of every payment you make toward joint debts during the separation. Under South Carolina law, these payments can be factored into the final property division — you may receive credit for supporting marital debts with post-separation income.

Handling Specific Debt Types

Mortgages are the biggest joint debt for most couples. The mortgage must be addressed alongside the home itself — whoever keeps the house needs either to refinance or obtain an approved loan assumption into their name alone, removing the other spouse from liability. A quitclaim deed without one of those lender-approved changes leaves the departing spouse on the hook.

Auto loans typically follow the vehicle. Whoever keeps the car should refinance the loan into their name alone.

Student loans are non-marital if incurred before the marriage. If one spouse took out loans during the marriage while the other supported the household, the court may treat them differently depending on who benefited from the education.

Medical debt incurred during the marriage and before the filing cutoff is generally marital. Medical debt incurred after the filing cutoff is generally assigned to the spouse who incurred it.

The South Carolina Divorce Financial Split & Asset Division Guide includes a debt allocation planner that helps you inventory every marital debt, classify each one, and build settlement language that protects your credit from an ex-spouse's post-divorce default.

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