How to Eliminate Credit Card Debt From Divorce
Getting a divorce means dividing up not only assets of the marriage, but also the debt of the marriage. This can include anything from car payments, mortgages or credit card debt. Some states are "community property" states, where assets are divided equally between spouses in the event of a divorce, while most states are "equitable" division states, where property is divided "equitably." Even if the debt is in one spouse's name, the debt can still be considered debt of the marriage by the court system, making both spouses potentially liable for its payment.
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Instructions
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Review the divorce laws of your state. Remember that even if one spouse stayed at home and the other was the sole bread winner or if there was a disparity in income between spouses, debts may not be split equally, even if both spouses incurred the debt. It can help to consult with a divorce attorney in your state to discuss debt issues.
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Refrain from making any credit card purchases while divorce proceedings are pending. If it is not possible to pay cash for items, keep detailed records about expenses. Remember that any household expenses, even if only one spouse is living in the house at the time, could still be considered marital debt. Keep all expenses to a minimum pre-divorce.
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Make a list of all credit card debt and under which spouse's name the credit card is under. This will be required during divorce proceedings anyway, so it is handy to get this ready beforehand. Make a spreadsheet of all credit cards and the balance on each one. Even if a credit card is under one person's name, both spouses could be liable for the debt if the card has been used for household expenses such as food, utilities or maintenance.
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List all credit card debt in your divorce petition. If possible, pay off any credit cards before filing your divorce petition, especially if they have been for marital expenses. Any debts left over once divorce proceedings begin will usually be paid out of marital assets, such as joint bank accounts. Any credit card debt incurred from only one spouse is usually that spouse's responsibility.
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