Card Credit Debt And Divorce
Married couples often take on debt together. With their
combined incomes, they may be able to afford more than
before. One of the most common debts a married couple
will share is buying a house. But even more common is
cards. Since most couples will "marry"
their finances, this may seem like a logical move. But
if they decide to divorce, they may find that their
debts are still coupled--'til death do they part.
If you and your spouse both have your names on a credit
card, you are both responsible for the balance on it--even
if you get divorced. This can add to up to big trouble,
especially if the divorce is contentious. A divorce
can bring out the worst in people, and settling debts
can get ugly. But there are ways to settle credit card
debt that will be fair to both parties if you can work
it out together.
The first step is to request a copy of your joint
credit report. Looking through it together, decide
which debts are individual and which are shared. If
possible, pay off all of your shared debt as soon as
possible, and cancel those credit cards immediately.
If that's not possible, make a plan: offer to take responsibility
for the debt in exchange for a greater share of the
assets in the divorce. But take heed--even if your spouse
has agreed to pay off your credit cards, he or she could
still default, and you will still be liable.
A Guide to Credit Card Debt and Divorce
On your wedding day, you probably weren't thinking about
the potential financial issues of a divorce. But you
need to protect yourself no matter what the outcome
of your marriage. The best thing you can do is be aware
of the financial consequences, and prepare a plan to
Read About Rebuilding Credit After Divorce
Learn more ways
get out of debt