What happens to credit card debt when you divorce?
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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 do I get a divorce with a lot of debt?
The simple solution: Don’t have any joint accounts. Try to close them all and refinance the house, car and other loans in one person’s name. Cancel shared credit cards and transfer the debt to cards in each person’s name.
Can I be held responsible for my wife’s credit card debt?
If your ex charged that $39,000 on a joint Visa card in both your names, you are equally liable for the debt. Also, if you co-sign on your spouse’s credit card, you are on the hook for whatever bills are run up on that account. Regardless of what state you live in, it’s not easy to totally protect yourself.
What assets are considered marital assets?
Understanding Marital Property Bank accounts, pensions, securities, and retirement accounts are also included; even an IRA, which is individually owned by law, is marital property if earned income is contributed to it during the course of a marriage.
