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What Happens to Credit Card Debt in Divorce?

Divorce in itself is a stressful event of your life. On top of that if you are required to handle the pressure of credit card debt, life may seem to be even more bitter for you. Though credit cards help you build credit over time, even a slight mistake can lead you into excessive credit problems. So, if you are going to file for divorce, it is important for you to be aware as to what is going to happen to the credit card debt.

There are various factors to be considered with regards to this query. This can even lead to complex issues. So, rather than carrying along credit card debt in divorce, it is better to opt for credit card consolidation if you are having problems in making the payments.

Credit card debt and divorce
Still, if you and your spouse carry along credit card debt while filing for divorce, there are different things which you will be required to consider. You may have to take proper care, so that you are not held responsible for any additional credit card debt, which may have been incurred by your spouse. However, situation can even vary as per the rules on divorce, and division of property and debt by the states.

So, before filing for divorce, make sure that both of you have paid off and closed any of the joint credit cards accounts. And if that is not the case, then either of you should try and get the name removed from the joint accounts which your spouse may continue to use even after the divorce. However, this is not going to end your liability towards the debts, which were incurred before the divorce filings and till your name was removed from it. The debt amount which you may be required to pay will be outlined in the divorce decree.

This means that the parties to the divorce are going to assign to each of you, the responsibility to pay down the specific credit card debts. This helps in ensuring that all of the joint debts get identified, where the credit cards which were taken out by one spouse without the knowledge of the other.

There are mainly two types of states, which consider the divorce filings in two different ways. One state believes in the principal of equitable distribution, and the other type is the community property state. In the states which believe in equitable distribution, the debts and the property get divided based on who owns what and who owes what. On the other hand, the community property states believe that both of the properties, and the debts should get divided in between the spouse on an equal basis. However, the debts and the properties and assets which are considered for equal distribution, are to be incurred and possessed during the years of the marriage.

So, the division of credit card debt really depends on the laws of the state you are in.

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