How Are Debts and Assets Split in a Missouri Divorce?

Missouri as an “Equitable Distribution” State

Missouri follows the “equitable distribution” principle when dividing marital property during a divorce. Unlike “community property” states that automatically split assets 50/50, Missouri courts aim to divide property fairly and equitably between both parties, which doesn’t necessarily mean equally.

This distinction is vital for St. Louis residents navigating divorce proceedings, as it means the court has considerable discretion in determining what constitutes a fair division based on your specific circumstances.

What Constitutes Marital vs. Separate Property in Missouri?

Understanding how Missouri law classifies property is the first step in preparing for asset division:

It’s important to note that separate property can become “commingled” and transform into marital property if mixed with marital assets without clear documentation. For example, depositing inheritance money into a joint account could potentially convert those funds into marital property.

Factors Missouri Courts Consider When Dividing Property

When determining an equitable division of assets and debts, St. Louis courts evaluate numerous factors, including:

• Economic circumstances of each spouse
• Contribution of each spouse to acquiring marital property (including as a homemaker)
• Value of each spouse’s separate property
• Conduct of the parties during the marriage
• Custodial arrangements for minor children
• Tax consequences of property division
• Career sacrifices made by either spouse during the marriage
• Length of the marriage

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How Are Debts Handled?

Debt division follows the same equitable distribution principle. The court evaluates whether debts were incurred for marital purposes or individual benefit. For example:

• Joint debt, like a mortgage or joint credit card, is usually split between both spouses.
• Individual debt, such as student loans acquired before marriage, may remain with the spouse who incurred it.
• The court may also consider who benefited from the debt and who is better positioned to repay it.

It’s crucial to understand that creditors are not bound by your divorce decree. If your ex-spouse fails to pay a debt they were assigned, but your name remains on the account, the creditor can still pursue you for payment. This makes proper legal planning essential when addressing debt division.

The Betz Law Firm Approach to Property Division

At The Betz Law Firm, we understand that each family’s financial situation is unique. Our approach to property division combines meticulous attention to detail with strategic negotiation to protect your financial future. We prioritize:

• Thorough discovery to ensure all assets and debts are identified
• Expert valuation of complex assets when necessary
• Strategic negotiation that focuses on your long-term financial well-being
• Clear explanation of tax implications and other financial consequences
• Creative solutions that maximize value for both parties when possible