What happens to credit card debt when you divorce?

What happens to credit card debt when you divorce?

When you get a divorce, you are still responsible for any debt in your name. Most states follow “common law,” which means that a court will hold you responsible for any credit card debt that is solely in your name, and will hold you jointly liable for credit card debt that is in both your name and your spouse’s name.

How is debt calculated in divorce?

Ultimately, the courts will determine how to divide marital debt in a divorce. For them, the person who borrowed the money is the responsible party, and they will reach out to that person in order to collect on the debt.

Is a wife responsible for deceased husband’s debts?

In most cases you will not be responsible to pay off your deceased spouse’s debts. As a general rule, no one else is obligated to pay the debt of a person who has died. If there is a joint account holder on a credit card, the joint account holder owes the debt.

Is debt a marital property?

All debts incurred during marriage, unless the creditor was specifically looking to the separate property of one spouse for payment, are community property debts. Property purchased with the separate funds of a spouse remain that spouse’s separate property.