Will I Be Responsible for My Spouse’s Credit Card Debt if We Get Divorced?

Of the many issues that must be addressed during divorce proceedings, the allocation of debt between the spouses often ends up being one of the most contentious. This is especially true in cases where one spouse incurred the majority of the debt in question.

Dividing Debt During Divorce 

Like assets acquired during a marriage, debts incurred while a couple are still married are considered marital debts, regardless of whose name is on the account. This means that any debts incurred by either spouse during the marriage are subject to equitable division upon divorce. Equitable does not, however, necessarily mean equal. Instead, courts will attempt to come up with a settlement agreement that is fair to both parties. What is fair in a particular case can be difficult to determine.

Equitable Distribution of Credit Card Debt Via Court Order

 The same equitable distribution laws apply to all forms of marital debt, including credit card debts. How a court goes about dividing responsibility for credit card debt incurred during the marriage, however, will depend on a number of factors, including: each spouse’s financial circumstances and ability to pay, whether both parties knew about the debt, and the nature and amount of the debt. If, for instance, one spouse took out a credit card without the other spouse’s knowledge and used it to buy extravagant gifts for another romantic partner, courts will generally be unwilling to make the spouse who didn’t incur the debt pay off the remaining balance. If, on the other hand, a credit card is in both parties’ names and was used to pay household expenses, then both parties will likely be held responsible for sharing the remaining debt.

Negotiated Settlements 

A court order is not, however, the only way to handle credit card debt during divorce. For instance, many couples can enter into a negotiated settlement, deciding on their own how they will divide their credit card debt. This could involve one spouse assuming the majority of the responsibility for specific debts, while the other is required to pay off others. In some instances, one spouse may agree to take on more debt in exchange for a greater portion of a marital asset.

Debt Repayment Plans 

Another option that many spouses choose when dividing credit card debt during divorce is to enter into a debt repayment plan. This involves both spouses agreeing to make payments on a joint credit card until the debt is fully paid off. This tends to be a practical solution in situations where both spouses are financially capable of contributing to debt repayment and have a relatively amicable relationship.

Contact a Largo Divorce Lawyer 

Contending with financial matters, like credit card debt during divorce can be complicated. At Cairns Law, our experienced Largo divorce lawyers can help you come up with a plan that is in your family’s best interests. Call us at 727-683-1472 or reach out to us online to learn more about how we can help with your own divorce proceedings.