When you got married, you probably didn’t think you’d ever get divorced. Likewise, if you bought a house, bought a vehicle, or took out a joint credit card with your spouse, you might not have thought about who would pay if you split up.

Joint debts can make your divorce more complicated, but attorneys can help you navigate them. Here’s a closer look at what happens to joint debts in divorce.

How Does Maryland Divide Debt and Assets in a Divorce?

Like most states, Maryland uses the equitable distribution model to divide marital debts and assets. That means the court will attempt to divide debt and assets in a way that is fair but not necessarily 50/50.

During divorce, only marital debt is subject to division. This is any debt that was accrued during the marriage and not beforehand or after separation. Importantly, judges in Maryland won’t divide debt that was taken out in only one person’s name.

What About Joint Debts?

Joint debts make property division a little more complicated. If you and your soon-to-be-ex spouse have a joint mortgage or loan, both of you are liable to the creditor. This holds true even if your divorce decree assigns responsibility for the debt to one spouse.

For example, imagine you and your spouse co-signed a loan for a vehicle. Your spouse is the one who usually drives the car, so the divorce decree grants them the vehicle and responsibility for the loan.

In theory, you shouldn’t have to worry about paying for the car going forward. However, because you’re still a co-signer on the loan, the creditor can come after you if your spouse stops paying.

This can have serious consequences. You might experience a major drop in your credit score, and the creditor could file a lawsuit against you. Understandably, if you and your spouse have joint debts, you probably don’t want to just trust that your spouse will continue to pay those accounts as agreed.

Fortunately, you have several options for resolving joint debts before the divorce is finalized. When you do this, you can ensure you’re fully financially separate from your spouse and ready to start fresh.

Practical Ways to Deal With Joint Debts in a Divorce

There are several strategies for handling joint debts.

Refinancing

In some cases, the spouse who will be taking sole ownership of an asset will refinance it in their name only. For example, if both of your names are on the mortgage and you’re getting the house in the divorce, you might take out a new mortgage in only your name.

Selling the Asset to Cover the Debt

In other instances, it makes more sense to sell a jointly financed asset like a home or a car. For example, if neither you nor your spouse would qualify for a mortgage alone, selling your family home might be the best option.

Using Marital Assets to Pay Off the Debt

If you have the funds, using assets to pay off joint debts now can help keep things simple.

How Maryland Law Simplifies Mortgages for Divorcing Couples

In many states, the easiest way to remove one spouse’s name from a mortgage is to refinance it. However, given the market’s high interest rates, refinancing might mean the spouse who gets the home will end up paying thousands more in interest than they otherwise would have.

That’s why Maryland passed House Bill 1018. The bill, which went into effect on October 1, 2025, allows one spouse to assume the mortgage if the couple divorces. This means the spouse who receives the home in the divorce may put the mortgage in their name only without having to refinance.

House Bill 1018 is a step in the right direction, but it doesn’t cover every situation. Here are a few caveats:

  • The law doesn’t apply to mortgages offered by national banks (like Bank of America, Wells Fargo, etc.)
  • It doesn’t apply to mortgages offered by federal credit unions
  • The mortgage lender must agree that the spouse assuming the mortgage would qualify for it on their own
  • It only applies to conventional mortgages

Conventional mortgages are those that aren’t backed by the government. That means House Bill 1018 doesn’t apply to Federal Housing Administration (FHA) loans, Veterans Administration (VA) loans, or U.S. Department of Agriculture (USDA) loans.

If you’re going through a divorce and aren’t sure whether you (or your spouse) will be able to assume the mortgage, an attorney can review your situation and help you determine whether that’s a viable option for you.

Concerned About Joint Debt in Your Divorce?

For many people preparing for divorce, figuring out how to best deal with joint debts can be a source of stress. When you work with Blattner Family Law Group, you can leave the logistics to us. We handle each case with patience, care, and attention to detail. Contact us to set up your consultation today!