Many couples charge expenses to their credit card without much thought. While they’re married, they may be able to pay those off or at least make the minimum payments. Some may not realize that the very thing that was a benefit for them during the marriage will turn into a problem during a divorce.
Your joint credit card debt is something that has to be handled during the property division part of the divorce. The manner in which you do this can have an impact on your finances in the future.
How is credit card debt divided?
Some people who are divorcing liquidate some assets to pay off joint credit card debt. This gives both parties a fresh start without having to worry about whether the other person will pay what they’re supposed to pay.
Other people have to divide the credit card debt. This can be hazardous to your credit report. Creditors aren’t part of the civil order that divided property, so they can still hold both parties accountable for joint credit card debt. This means that if your ex doesn’t pay what they’re supposed to pay, the late payments will be reported on your credit report, which can harm your score.
All assets and debts must be addressed during the divorce. There are several ways to handle these, so be sure you evaluate the possibilities and make your decision based on what you feel is in your best interests. Ultimately, you have to do what’s going to set you up with the best financial situation possible. Having someone on your side to assist you with this is beneficial.