Who is Responsible for Medical Bills in a Divorce?

Divorce brings more than its fair share of emotional and financial challenges. Unfortunately, there’s not just one financial matter to work through. Every turn comes with a new set of financial questions, disclosures, and decisions. One of the topics that is likely to come up is the division of medical bills in a divorce.

Worried about the debt you’ll be taking on in divorce? We can help. Call Olmstead & Olmstead at 703-361-1555 to set up a time to talk now.

Understanding Medical Bills in a Divorce

Medical bills are often seen as shared debts that both spouses are responsible for, as long as they were incurred during the marriage. However, this responsibility can vary.

For example, if one spouse makes significantly more money than the other, the court might decide they should cover a larger portion of the medical expenses. This ensures that both parties can manage their finances better after the divorce. Consider, for example, a couple with one working spouse and a stay-at-home parent. The court is unlikely to make the stay-at-home parent take on a substantial amount of medical debt, as their earning potential is likely far lower than their partner’s.

Community Property vs. Equitable Distribution

Two main legal principles determine how assets and debts, like medical bills, are divided in a divorce: marital property and equitable distribution.

Most states, including Virginia, follow the principle of equitable distribution, which divides assets and debts in a way that is fair. This doesn’t always mean a 50/50 split. The court looks at factors like each spouse’s income, financial needs, and contributions to the marriage. In this situation, medical bills may be split in a way that takes into account each spouse’s ability to pay. For instance, if one spouse earns more money, they might be responsible for a larger portion of the debt.

Each Party’s Ability to Pay

Courts take a close look at each party’s financial situation when determining who should be responsible for medical bills during a divorce. Several factors are evaluated, including income, employment status, and existing financial commitments. This approach helps ensure that both individuals can maintain a reasonable standard of living after the divorce, while also fulfilling their financial obligations.

The court may also consider other relevant aspects, such as each party’s age, health, and earning potential. For instance, if one spouse has limited earning capacity due to age or health issues, the court might allocate a smaller portion of the medical bills to them. On the other hand, if a spouse is in good health and has a high earning potential, they might be expected to contribute more.

You must present accurate and detailed financial information during your divorce proceedings. This allows the court to make a fair and informed decision regarding the division of medical bills. Both parties should gather and submit all relevant financial documents to ensure a comprehensive evaluation of their ability to pay. This thorough approach helps achieve a fair distribution of medical expenses.

Impact of a Divorce Agreement

The divorce agreement is a key document that outlines how medical bills will be divided between you and your spouse. This agreement helps set clear expectations and responsibilities for both parties, which can prevent future conflicts. If you have children, you should outline who will cover future and ongoing medical expenses.

Working with a lawyer can be very helpful in drafting every part of your agreement. They can guide you through the process and ensure that all important details are covered. This way, both you and your spouse know exactly what to expect and who is responsible for each type of expense.

There are situations where this is even more important. For example, if you have a child with significant special needs or serious medical diagnoses, they are likely to incur far more medical debt than the average child. If you do not address this matter in your divorce decree, it’s likely to come up again and again in your co-parenting relationship.

Discuss Your Options with Olmstead & Olmstead

Ready to talk about taking the next step in your Virginia divorce? Let’s talk. Call Olmstead & Olmstead at 703-361-1555 or fill out our online contact form to set up a time to talk.