Many Americans use credit cards to make purchases as a way of floating a bill between paydays. You can accumulate a significant amount of debt on those cards in very little time. If you divorce, that debt has to be divided — just like your assets.
If you think that negotiating the division of the marital assets is tough, you could be surprised to find that this part of your divorce negotiations is even harder. Here are some potential solutions:
Option #1: Requesting separate cards
You may want to place a call to your credit card issuer to ask if they’d consider splitting your joint credit card’s balance into two separate accounts. If they do this, you won’t have to worry as much about your spouse agreeing to pay off the credit card balance on any joint accounts.
Option #2: Pay off and close any joint credit cards
Paying the card off completely might be ideal if you have the cash to do it. This can help both you and your spouse move forward without any lingering financial entanglements. If it’s not possible to use cash, each of you could open new cards and transfer your share of the balance of any jointly held cards to those.
Why prioritize credit card debt and other property division discussions?
Simply put: Creditors have no obligations to honor your divorce agreement. If your spouse agrees to take over the payments on a loan that carries both your names and fails to do so, you could find yourself facing a debt collector. Similarly, if your ex-spouse files bankruptcy, creditors can come after you for joint debts.
Working through the property division process is hard, but you don’t have to do it alone. Learn more about your options today.