By Jason M. Rice, Esq. | Dirigo Divorce | York County, Maine
Last Updated: September 2026 | 7-Minute Read
When most people think about divorce and finances, they think about dividing assets — the house, the retirement accounts, the bank accounts. But debt is just as important, and in many cases, just as contested. Who is responsible for the credit card balances? The car loans? The student loans? The mortgage?
Understanding how Maine handles marital debt is essential for protecting your financial future during a divorce. This guide explains the rules, the risks, and what you can do to protect yourself.
Maine Divides Debt the Same Way it Divides Assets
Maine is an equitable distribution state — which means both assets and debts accumulated during the marriage are subject to division in a divorce. The court does not simply look at whose name a debt is in. It looks at the full picture of the marriage and divides both assets and debts in a way that is fair to both parties.
This means that debt you did not personally incur can still be assigned to you in a divorce — and debt your spouse incurred can still be assigned to them even if it was technically a joint obligation.
What is Marital Debt in Maine?
Marital debt is generally any debt incurred by either spouse during the marriage, regardless of whose name it is in. Common examples of marital debt include:
- Joint credit card balances
- Mortgages on the marital home
- Car loans for vehicles purchased during the marriage
- Medical bills incurred during the marriage
- Personal loans taken during the marriage
- Business debts incurred during the marriage
Separate debt — debt incurred by one spouse before the marriage, or debt clearly incurred for one spouse’s individual benefit after separation — may be treated differently. But the line between marital and separate debt is not always clear, and disputes about characterization are common.
How Does a Maine Court Decide Who Pays What Debt?
Maine courts consider a range of factors when allocating marital debt, including:
- Which spouse incurred the debt and for what purpose
- Whether both spouses benefited from the debt
- Each spouse’s ability to repay the debt going forward
- The overall fairness of the debt allocation in the context of the full property and debt settlement
- The nature of the debt — was it incurred for family purposes or for one spouse’s individual benefit?
Courts try to create a settlement that is financially workable for both parties. A spouse who is awarded the marital home will typically also be assigned the mortgage. A spouse who is awarded a vehicle will typically be assigned the car loan. The goal is to align debt responsibility with the assets being received.
The Critical Warning About Joint Debt
This is one of the most important things to understand about debt in a Maine divorce, and one of the most commonly overlooked.
When a court assigns a joint debt to your spouse, that court order is binding on you and your spouse. It is not binding on your creditors.
What this means in practice: if the divorce decree says your spouse is responsible for the joint credit card balance and they fail to pay it, the credit card company can still come after you. Your credit score can still be damaged. You can still be sued for the debt. The divorce decree gives you a legal remedy against your spouse for the breach — but it does not protect you from the creditor.
Whenever possible, joint debts should be:
- Paid off entirely as part of the divorce settlement
- Refinanced into one spouse’s name alone, removing the other spouse’s liability
- Addressed through specific indemnification provisions in the divorce decree that protect the non-responsible spouse and give them legal recourse if the responsible spouse fails to pay
Student Loans in a Maine Divorce
Student loans are one of the most frequently contested debt issues in divorce. The general rule is that student loans incurred before the marriage are separate debt and are not subject to division. Student loans incurred during the marriage are more complicated.
Maine courts consider whether the education benefited both spouses — for example, by increasing the borrowing spouse’s earning capacity, which in turn benefited the family. If the student loan was taken during the marriage and the education improved the family’s financial situation, a court may treat a portion of it as marital debt.
If your divorce involves significant student loan debt — whether yours or your spouse’s — this is an issue to address specifically with your attorney.
What Happens to the Mortgage?
The marital home and its mortgage are usually the largest single debt issue in a Maine divorce. There are several ways courts and parties typically handle the mortgage:
- One spouse keeps the home and refinances the mortgage in their name alone, removing the other spouse from the obligation
- The home is sold and the proceeds are used to pay off the mortgage, with any remaining equity divided between the parties
- One spouse remains in the home temporarily — often to allow children to finish a school year — with the home to be sold and the mortgage resolved at a future date
If the home is awarded to one spouse and they fail to refinance, the other spouse remains on the hook for the mortgage even after the divorce. Courts routinely include provisions requiring refinancing within a specific timeframe and providing remedies if it does not happen.
Protecting Yourself During the Divorce Process
While your divorce is pending, there are practical steps you can take to protect yourself from debt-related harm:
- Monitor your credit report regularly for new accounts or changes
- Keep records of all debt payments you make during the divorce proceeding
- Avoid taking on new debt during the divorce without consulting your attorney
- Document any debt your spouse incurs that appears designed to dissipate marital assets
Frequently Asked Questions About Debt in a Maine Divorce
Can my spouse run up debt during the divorce to reduce what I receive?
Intentionally dissipating marital assets — including running up debt for non-marital purposes during the divorce — is taken seriously by Maine courts. If you can demonstrate that your spouse incurred debt in bad faith during the divorce, the court can take that into account in fashioning an equitable settlement. Document suspicious financial activity and bring it to your attorney’s attention immediately.
What if there is more debt than assets?
In cases where marital debt exceeds marital assets, Maine courts still attempt to divide the debt equitably. In extreme cases, one or both parties may need to consider whether bankruptcy is an appropriate option. Certain marital debts — including domestic support obligations like alimony and child support — are not dischargeable in bankruptcy. Discuss the full range of options with your attorney.
Am I responsible for my spouse’s business debts?
Business debts can be among the most complex debt issues in a divorce. Whether a spouse’s business debt is marital or separate depends on the nature of the business, when the debt was incurred, and how it was used. If your spouse owns a business with significant debt, getting a thorough financial picture of the business is essential before any settlement is finalized.
Worried About Debt in Your Divorce? Let Us Help.
Debt division mistakes in divorce can haunt you for years. At Dirigo Divorce, we help clients throughout central and southern Maine understand their debt obligations, protect themselves from their spouse’s liabilities, and reach settlements that are financially sound and enforceable.
We serve clients throughout Androscoggin County, Cumberland County, York County and southern Maine, including Springvale, Sanford, Kennebunk, Biddeford, Saco, and surrounding communities. We are also licensed in New Hampshire and serve clients across the Seacoast region.Call us at (207) 200-3231 or visit dirigo-divorce.com to schedule your consultation today.