Marital Debt in a Minnesota Divorce

How Debt Is Treated in a Minnesota Divorce

When couples go through a divorce in Minnesota, one of the most confusing topics is how debt is divided. Many assume that if a debt is in one spouse’s name, it belongs only to that person. But Minnesota law takes a closer look — not just at whose name is on the account, but who incurred the debt and for what purpose.

The Presumption: Marital Debt

Under Minnesota law, any debt incurred during the marriage is presumed to be marital debt. That means both spouses are generally responsible for paying it, regardless of whose name appears on the bill.

However, this presumption can be rebutted if one spouse can show that a particular debt was incurred solely for their own benefit and was not related to the marriage or family. In other words, courts look at the purpose of the debt, not just whose name is on the account.

Marital vs. Non-Marital Debt: A Practical Example

Let’s look at how this works in everyday life.

Example 1: The Gold Card for Golf

Suppose the husband has a gold credit card in his name that he alone uses — and every charge on it is for his golf outings, clubs, and green fees. Since these expenses benefit only him, a Minnesota court would likely consider that his non-marital debt. The other spouse should not be expected to share responsibility for a debt that didn’t benefit the marriage.

Example 2: The Household Credit Card

Now, consider that same husband has another credit card in his name that he uses to pay for groceries, clothing for the children, and household supplies. Even though this credit card is in his name alone, these expenses benefited the family. As a result, the court would likely treat it as marital debt, which both spouses share.

The key takeaway is that how the debt was used matters more than whose name is on it.

What About Creditors? Understanding Third-Party Liability

Even though the family court can divide debts between spouses, it’s important to remember that the court has no jurisdiction over third-party creditors such as banks or credit card companies.

If both spouses are listed on a debt, the creditor can legally pursue either or both spouses for payment. This is because, under Minnesota law, joint debts carry joint and several liability. That means the creditor can hold either spouse responsible for the entire balance, regardless of what the divorce decree says.

If your ex-spouse fails to pay a debt the court assigned to them, the creditor can still come after you for payment. Your remedy is to return to family court to enforce the order — not to challenge the creditor directly.

Protecting Yourself During Divorce

Understanding how debt is divided — and how creditors may still pursue repayment — is crucial when negotiating or litigating a divorce settlement. You’ll want to identify which debts are truly marital, which are not, and how to minimize the risk of post-divorce collection issues.

Need Help Understanding Debt Division in Your Divorce?

Dividing debt in a Minnesota divorce can be complicated, especially when emotions and finances are intertwined. If you have questions about whether a particular debt is marital or non-marital, or want to protect yourself from post-divorce creditor issues give Mundahl Law a call.