Stanley David Alford v. Pamela Ward Alford

We granted permission to appeal in this divorce case to determine: (1) whether the Court of Appeals erred in applying a "joint benefit" definition of marital debt and holding that debt incurred by Wife during the parties' ten-year separation was marital debt; and (2) whether the Court of Appeals correctly allocated this debt when it held that Husband should be required to pay Wife's marital debts. We hold that debts incurred by either or both spouses during the course of a marriage are properly classified as marital debt; therefore the debts at issue in this case are marital. In allocating marital debts, trial courts should consider the following four factors: (1) the debt's purpose; (2) which party incurred the debt; (3) which party benefitted from incurring the debt; and (4) which party is best able to repay the debt. Because the record does not contain sufficient evidence to determine how the debts in this case should be allocated, this case is remanded to the trial court to determine the proper allocation of the marital debts. The trial court's determination shall be guided by the four factors set out above.