How to Divide Credit Card Debt in Divorce
How your credit card debt will be divided in a divorce depends largely on the state in which you live. With the exception of Florida and Alaska, states are separated into two distinct categories: community property, and equitable distribution (also known as "common law"). Community property states divide credit card debt in a divorce one way, while equitable distribution states use another method.
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Instructions
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Before You Divide Credit Card Debt
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1
When you decide to divorce, immediately cancel all of your credit cards. Do not charge any more debt to any cards that were opened during the marriage.
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2
Request a final statement for each credit card, and tally up the total amount of credit card debt you and your former spouse owe. Separate cards according to those owned jointly, those owned by you, and those owned by your former spouse. Any card that is in your name only, but on which your former spouse is an authorized user, counts as a card owned solely by you, and vice versa.
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3
Create a ledger for each individual card, sorting them into the three categories: your cards, your former spouse's cards, and joint cards. Include the account numbers, the issuing lender and the final balance for each card. You also might want to create a separate ledger that details the minimum monthly balance, due date and similar information for each card. Do not include cards opened since the initial separation.
Equitable Distribution States
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4
Add up the total amount of debt incurred jointly by you and your spouse during the marriage. Exclude credit cards in just your name or your former spouse's name.
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5
Divide the total amount of debt in half. This is the amount that you and your former spouse each is responsible for if you live in an equitable distribution state.
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6
Provide your former spouse with your calculations, and ask that he pay for his half of the credit card debt. If you and your former spouse are not on amicable terms, do this in a polite letter detailing your calculations and your state's credit card debt division laws. Attach copies of the statements, ledgers and paperwork showing your calculations. Send the letter and attachments via Certified Mail with signature delivery for proof of mailing that you can submit to the judge if your former spouse refuses your proposal.
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7
Submit copies of the ledgers, bills and your calculations to the judge handling your divorce if your former spouse refuses to pay her half. Furnish a copy of the original letter along with the Certified Mail receipt, and request the judge enter an order.
Community Property States
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8
Calculate the entire amount of debt incurred by you and your former spouse, both jointly and individually. Include credit cards in just your name or your former spouse's name. Make a note of who will be keeping what property and the corresponding total balance left on the card for large purchases on divided property
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9
Determine who should pay what amount, depending on who earns more income and/or who is keeping the property that was charged to the credit cards. For example, if you are a stay-at-home mother and your former spouse was the sole breadwinner, you can request that he pay the entire credit card debt. Alternatively, you can divide the debt by having the spouse who receives divided property that was charged cover the outstanding balance.
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10
Write your determinations down and submit them, along with a copy of your ledger and the final statements, to the judge if your former spouse refuses to agree on division of your credit card debt. Request the judge make a determination for you and enter an order.
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