How to Handle Debt in a Divorce Settlement

A real-world story about debt, divorce, and taking back control

When Emily walked into my Denver office, her voice was steady, but her hands gripped the strap of her purse like it was the only thing holding her together.

“I’m not here to fight over the house,” she said. “I’m here because of the debt.”

It wasn’t just numbers on paper. For her, it was a weight — years of credit card charges for groceries and school clothes, a car loan in both names, and a lingering medical bill from when their youngest had pneumonia. The marriage was ending, but she felt like she’d be chained to these debts for the rest of her life.

“Will this follow me forever?” she asked.

The Truth No One Likes to Hear

I told Emily something most people don’t realize: in Colorado, most debt taken on during the marriage is marital debt — even if it’s only in one person’s name.

She looked at me sharply. “Even if I never used his card?”

“Yes,” I said gently. “If it were for household expenses during the marriage, it could still be considered shared. And even if the divorce agreement says he’s responsible, the creditor can still come after you if your name is on the account.”

She let out a slow breath. I could see the weight of that sink in — the idea that walking away from the marriage didn’t mean walking away from the bills.

Facing the Full Picture

We started with the hard part: laying it all out. Every account. Every balance. Every interest rate.

At first, Emily hesitated. “I’m not sure I want to see the total.”

“I understand,” I told her. “But knowing the full truth gives us control. Without that, you’re fighting blind.”

When we finally tallied it up, she stared at the page for a long moment. Then she surprised me.

“It’s not great,” she said, “but it’s better than wondering.”

That’s when we started making a plan.

Choosing the Path Forward

Emily’s first priority was peace of mind. She didn’t want the stress of wondering if her ex would make the payments on time. So we looked at options: paying off smaller debts before the divorce was finalized, assigning the car loan to the person who kept the car, and refinancing a joint credit card into her ex’s name alone.

We also traded some debt for assets — he kept more of the savings account in exchange for taking on the personal loan. Each choice was about more than math; it was about giving her a clean break.

Protecting What Comes Next

Before she left that day, we talked about credit.

“Your credit is the key to your next chapter,” I said. “It’s what will let you rent a home, buy a car, maybe even start over in ways you haven’t imagined yet.”

We set up a plan: close joint cards, remove her ex as an authorized user, and monitor her credit report every month until all accounts were fully separated.

The Moment She Walked Away Lighter

Months later, Emily came back to sign her final papers. Her shoulders were straighter. Her smile reached her eyes.

“It’s strange,” she said. “I thought the hardest part would be letting go of the marriage. But honestly? It was letting go of the debt that made me feel free.”

She left knowing exactly what she was responsible for — and what she wasn’t. No hidden liabilities, no unpaid bills hanging over her head. Just a clean start and the confidence to build her future without old debts holding her back.

If you’re in Emily’s position — worried about debt following you after divorce — you’re not alone. And you don’t have to figure it out alone. At Dunsing Law, we help our clients create settlements that protect their credit, divide debt fairly, and give them the freedom to start fresh.

📍 Dunsing Law | 1776 S Jackson St #1107, Denver, CO 80210
📞 (303) 807-1242