What Happens to Debt in a Texas Divorce?

 Posted on September 15, 2026 in Asset Division

Divorce means separating more than just the property you have together. Any debts you have, whether it be a mortgage or credit card balance, need to be addressed before you can move forward financially.

In a Texas divorce, the court can assign responsibility for debts as part of the division of the marital estate. However, getting divorced does not automatically end your responsibility to a creditor if your name remains on a joint account or loan. If you are preparing for divorce in 2026, a Houston, TX divorce attorney can help you navigate how debts might impact the division of property in your divorce.

How Does Texas Divide Debt in a Divorce?

Texas courts divide the marital estate in a way that is fair under the circumstances, which is referred to as a "just and right" division. This does not require the court to split everything equally.

Debt is part of the financial picture the court addresses during property division. The judge can assign certain debts to each spouse when entering the final divorce decree. Spouses can also negotiate responsibility for their debts as part of a property settlement agreement.

Am I Responsible for Debt That Is Only in My Spouse's Name in Texas?

Marriage alone does not make you personally liable for every debt your spouse takes on. Texas Family Code Section 3.201 states that one spouse is personally liable for the other spouse's acts when the spouse acted as an agent or incurred a debt for necessities.

However, personal liability is not the only issue. Under Texas Family Code Section 3.202, a creditor can reach certain community property to pay a debt even when only one spouse is personally responsible for it. Which property is available to the creditor is based in part on who incurred the debt and whether it arose before or during the marriage.

So, when it comes to assigning responsibility for the debt, the name on an account does not provide the full picture.

What Types of Debt Need to Be Addressed During a Texas Divorce?

Before debts can be divided, you need a complete picture of what you and your spouse owe. Some obligations are easy to identify, while others can be overlooked until later in the divorce.

Common debts that need to be addressed include:

• A mortgage or home equity loan, when deciding what happens to the family home or other real estate
• Credit card balances, which require particular attention when both spouses are responsible for a joint account
• A vehicle loan, along with who will keep the car after the divorce
• Personal loans and other installment debts, when reviewing the couple's overall financial obligations

Gathering recent statements and loan documents can help your attorney determine what needs to be addressed. It can also uncover joint accounts that will require action after the divorce.

Does a Texas Divorce Decree Remove My Name From Joint Debt?

A divorce decree does not remove your name from a loan or joint account. The decree controls responsibility between you and your former spouse, but it does not rewrite your contract with a creditor.

A creditor can generally pursue anyone who remains legally responsible under the original agreement. For example, if your divorce decree requires your former spouse to pay a joint car loan and your name remains on that loan, the lender can still seek payment from you if your former spouse stops paying.

Removing that risk often requires action beyond the divorce decree. Depending on the account, refinancing or obtaining a release from the creditor can remove one spouse from the obligation.

What Happens if My Spouse Takes on New Debt During Our Texas Divorce?

Filing for divorce does not give either spouse free rein to create harmful new obligations. Texas law specifically addresses certain debts incurred while a divorce case is pending.

According to Texas Family Code Section 6.707, one spouse cannot intentionally take on debt during a pending divorce to harm the other spouse's financial rights. When that happens, the debt can but doesn’t always bind the other spouse, although the law protects certain third parties who did not know about the harmful intent.

If you discover unusual borrowing while your divorce is pending, tell your attorney immediately. Financial records can help establish when the debt arose and how it should be handled in the divorce.

Contact a Houston, TX Property Division Lawyer

Our attorneys at The Cusic Law Firm, P.C. can help you address debt and other property division issues before your divorce is final. We take the time to understand your financial concerns and ensure you are not taken advantage of.

Attorney Dessiray W. Cusic has been Board Certified in family law since 2014 and is also a certified mediator who regularly mediates family law cases. For a free consultation, contact our Harris County, TX family law attorneys or call 713-650-1866 today.