Are you headed for divorce in Indiana? This is a difficult process to go through no matter how long you’ve been married. If there is debt involved in your marriage, you will definitely want to know ahead of time how this will be divided. So, how is credit card debt handled in divorce?
The most important thing you need to take a look at with credit card debt is the names on the accounts. If both your name and your spouse’s name are on the account as co-signers, then both parties will be responsible for the debt incurred during the marriage. If only one person is named as a signer on the card and the spouse is just an authorized user, the only person who will be held responsible for the debt will be the signer.
Take note of the separation point in the marriage. This is important because it will define how credit card debt is divided once the divorce is finalized. From the minute you separate from your spouse, all debt incurred on credit cards is the full responsibility of the person who made the charges, not both parties.
As you prepare for divorce, cancel joint credit cards you have and open ones in your name only. You should also keep detailed records of anything you charge on the credit card if the joint account is still active. This helps prove what debt is yours and what debt belongs to your spouse.
Credit card debt is a problem millions of Americans deal with each year. Credit card debt can cause problems should you get divorced. Speaking with an experienced family law attorney can help you understand how debt can affect you in divorce.
Source: Credit Cards, “Dividing credit card debt in divorce,” accessed Oct. 04, 2017