How is credit card debt divided in a divorce?
When you have credit card debt in both of your names, you are equally liable for the outstanding balance, even following the divorce. The same rule applies to accounts you cosign, and you’ll owe the debt if your partner doesn’t pay up.
Is credit card debt considered marital property?
There are nuances from state to state, but generally speaking, anything purchased during the marriage is community property. So anything owed as a result of those purchases –mortgages, auto loans, credit card debt – is community property.
Can credit card statements be used in divorce?
Documents are the lifeblood of divorces. Every day, spouses make choices. Those choices are documented in credit card statements, bank statements, tax returns, and many other records. … Your family law attorney will need the documents listed below to adequately represent you in your divorce.
Is a wife responsible for husband’s credit card debt?
You are generally not responsible for your spouse’s credit card debt unless you are a co-signor for the card or it is a joint account. However, state laws vary and divorce or the death of your spouse could also impact your liability for this debt.
How do I protect myself financially in a divorce?
How to Protect Yourself During Divorce
- If you have children, consider staying in the family home. …
- Don’t allow your spouse to take the children and leave. …
- Get an attorney. …
- Safeguard personal papers and make copies of important records. …
- Cancel all jointly-owned credit cards. …
- Make a record of all marital property.
Can I sue my ex for credit card debt?
The responsible spouse may be able to transfer the debt to an individual credit card account with a balance transfer. … For example, it could state you have the right to sue your ex for failing to pay a debt that he or she was ordered to pay.
Should I pay off my debt before divorce?
If you have any joint debt with your spouse and you can afford to, we highly recommend paying off all marital debt, even before you draw up the divorce papers. … If you have any cash or savings available, you’re better off tapping into that and getting rid of the debt before the divorce is final.
Is my spouse’s debt my responsibility?
In most cases you will not be responsible to pay off your deceased spouse’s debts. … If there is a joint account holder on a credit card, the joint account holder owes the debt. A joint account holder is different from an “authorized user.” An authorized user is not usually responsible for the amount owed.
Matrimonial debt on divorce
Regardless of whether the debt was taken out in the name of one spouse, or as a joint debt, if the debt was incurred for the benefit of the family (i.e. both spouses have enjoyed the benefits of the loan), then it is likely that both parties will be jointly responsible for the debt.
Can you hide bank accounts in divorce?
Once either spouse starts a divorce action, or you begin to work with a mediator or collaborative divorce attorneys, both spouses are required to disclose all of their finances. Concealing an asset (like cash) can result in financial penalties and sanctions from the court.
What can be used against you in a divorce?
Anything you put in writing can be used against you and is fair game for the opposing party. However, if your ex plans to use texts or emails not directed toward them, he or she must be able to show that they had the authority to access the information.
Can I cancel my wife’s credit card?
Generally, either party can unilaterally close the account by contacting the card issuer over the phone or in writing. Once closed, the cards of both joint account holders and any authorized cardholders will be deactivated, and any future attempt to make purchases will be declined.