Splitting Up A Marriage And Splitting Up Credit Card Debt: What To Know

When a couple is going through a divorce, dividing their credit card debts can be a complicated process. This type of debt can be prevalent with many couples and deciding who should bear the responsibility for the debt can be confusing and messy. Read on for some ideas on dividing credit card debts from divorce.

Decide for Yourself

A given state is either a community property or an equitable distribution state. Generally, couples divorcing in a community property state will divide up all debts more or less in half with each party being responsible for an even portion of the debts. Equitable distribution states take each case on its own merits and divide things based on whether you took out the debt, used the card the most, and so on.

Divorcing couples can make their own decisions about their credit card debts. They are free to sit down and work out a plan for dealing with this and other divorce issues on their own. If the judge agrees that the debt divisions are fair, the agreement will be ordered to be done.

Ideas for Dividing Credit Card Debt with Divorce

Here are a few possible ways that divorcing couples can divide their credit card debts:

Pay off the debts together: If the couple is on good terms and can afford to do so, they may choose to pay off their credit card debts together before finalizing the divorce. This can be done by allocating a portion of their joint assets towards paying off the debts, or by selling assets to generate cash to pay off the debts.

Divide the debts equally: Another option is for the couple to divide their credit card debts equally between them. This can be done by adding up the total amount owed and then splitting it evenly, or by dividing the debts according to each spouse's income or spending habits.

Assign debts to individual spouses: The couple may also choose to assign specific credit card debts to each spouse, based on who incurred the debt or who benefited from the charges. For example, if one spouse used a credit card to pay for personal expenses, that debt could be assigned to that spouse.

Negotiate a settlement: If the couple cannot agree on how to divide their credit card debts, they may choose to negotiate a settlement with the help of their respective attorneys or a mediator. This can involve trade-offs, such as one spouse taking on more debt in exchange for receiving a greater share of the marital assets.

Speak to a divorce lawyer in your area to learn more.