Americans are voracious consumers of secured and unsecured debt. We rack up student loan debt, get car loans as well as contend with mortgage payments and credit card bills. Surveys have found that the average American family with at least one credit card has somewhere near $16,000 in credit card debt. The problem for divorcing couples in Tennessee is how this debt is ultimately divided. The general rule in an equitable division state like Tennessee is that debts incurred during the marriage for marital purposes is marital debt, regardless of whether it’s listed jointly or in only one spouse’s name. The operative word being debt incurred during the marriage; debts acquired prior to marriage aren’t considered joint liabilities.
Tennessee statutes do not define any difference between marital and separate debt, nor do the statutes offer any advice about separating the debts a married couple may have accumulated during the marriage. However, in 2003 the Tennessee Supreme Court clarified this issue in Alford v. Alford. In this case the Court determined that, if possible, it will assign a debt to the spouse who receives the asset acquired by the debt by considering the following four factors:
- The debt’s purpose;
- Which party incurred the debt;
- Which party benefitted from incurring the debt; and
- Which party is best able to repay the debt.
What Do I Do After The Divorce?
If you have any joint credit cards you will most likely want to ensure that they are closed out entirely when you separate. Before this can happen, the bank will usually require that the balance be paid off, something that can be taken care of in the divorce settlement agreement. It is critical that any joint credit card accounts be shut down to avoid all future charges once the marriage is over. Failing to do so could result in numerous problems if your spouse goes on a spending spree using a card that you have signed onto, even if you are no longer married, as you could still be held legally responsible for the debt.
Divorce and debt are obviously complex issues one must take seriously as it can have a lasting effect on one’s credit worthiness as it relates to the ability to buy a car, qualify for a mortgage or simply be in good standing with banking institutions. An experienced attorney like Donna Wagner can guide you through such complexities and fight for you in obtaining an equitable solution to your divorce. Contact Mrs. Wagner today to set up a consultation.
Real-life results
See what happy clients are saying about me.
“I spoke with several attorneys and from the moment I spoke with Donna I knew she was the person I wanted to hire for a child custody case.
From the very first interaction she was enthusiastic, friendly, and honest. She asked a lot of questions to get to know the case well. I was so impressed with how thorough and thoughtful she was throughout the entire process, explaining every step along the way.
Donna was great at staying in contact and kept me updated as everything progressed. She was affordable and very fair in her billing. If ever another situation is to arise in which I’m requiring legal assistance and representation she will be the first I call.
Due to Donna’s persistence I was able to come out ahead with more than I had ever hoped for when I first brought her my case. She helped me to see and understand things about my situation that would have never occurred to me on my own.
This woman has so much integrity! I’m so grateful for all of her help during a nerve wracking time. She was incredibly personable. I highly recommend Donna Wagner for your legal needs.
Best decision I ever made in the midst of a divorce, from someone who asked for the divorce, was to hire Donna Wagner. I was facing an attorney who was representing my spouse, thinking all I had to do was sign the papers. No, they were attempting to get money out of me. Keep in mind we didn’t have any kids. Anyhow, Donna came in and shut it all down. I was due in court in a week and she got that continued. After going back and forth with the opposing attorney, Donna was able to not only get them to settle the case without going to court but have everything ruled in my favor. I am finally divorced and can breathe easy. Thank you Donna Wagner!
Donna provided such expertise during my case with her. She was always responsive, knowledgeable and professional, while also being compassionate to my situation. I cannot recommend her enough!
I know for certain that If I am needing an attorney again in the future, I will be using Donna Wagner. There are so many great things to say about Donna. However, I believe what I appreciated most was how Donna handles special situations, and I assure you, my circumstances were just that! Donna was very thorough during my entire case. She was able to address my unique case but also do so with legal basis even though the courts may not always allow for such situations. Donna was very thorough each step of the way and was certain to not leave any stone un-turned. One thing I really liked about Donna was her fire. When situations arose, she can be more than passionate about her job and serving justice to those who deserve it. I also want Donna’s clients to know that she was very timely with me in her communications with me. Whether by email or phone, she was always just a call or a message away. When being in a legal situation, I know from previous experience, being able to reach your attorney means everything. I am more than pleased with the results that I recieved from Donna Wagner, and I assure you my case turned out better than I had imagined and even for a fair price. Donna Wagner rocks!
I know for certain that If I am needing an attorney again in the future, I will be using Donna Wagner. There are so many great things to say about Donna. However, I believe what I appreciated most was how Donna handles special situations, and I assure you, my circumstances were just that! Donna was very thorough during my entire case. She was able to address my unique case but also do so with legal basis even though the courts may not always allow for such situations. Donna was very thorough each step of the way and was certain to not leave any stone un-turned. One thing I really liked about Donna was her fire. When situations arose, she can be more than passionate about her job and serving justice to those who deserve it. I also want Donna’s clients to know that she was very timely with me in her communications with me. Whether by email or phone, she was always just a call or a message away. When being in a legal situation, I know from previous experience, being able to reach your attorney means everything. I am more than pleased with the results that I recieved from Donna Wagner, and I assure you my case turned out better than I had imagined and even for a fair price. Donna Wagner rocks!
I obtained Mrs. Donna Wagner’s services in 2012 to help with my charge of driving under the influence. I first called several other attorneys, but none of them were willing to listen to my case. Mrs. Wagner not only took the time to listen but went out of her way to be sensitive to my issues, respond quickly to my questions, and help me understand this unfamiliar process. It was clear to me from the beginning that she knew the system well and was very thorough in her exploration into my case. With her experience and knowledge of the Mt. Juiliet court system, combined with her adept use of the evidence at hand, she was able to get my charges significantly reduced. I could not be more happy with my choice of attorney. I am certain that I would not have had such a successful outcome without her guidance and skill.
