It is not uncommon for a married couple to get a joint credit card that both partners can use during the course of their marriage. However, if that couple gets a divorce, it can be difficult to decide who is responsible for the charges on that card during the final divorce decree. Louisiana couples who are facing a divorce should educate themselves on how the best way to handle joint credit cards and the debt associated with them.
What happens to joint credit card debt after a divorce?
When the court issues your final divorce decree, it will assign certain assets and debts to each partner. With assets such as savings accounts and investments, the process is often simple. However, joint credit cards can be a bit more difficult.
In many cases, the court will name each partner responsible for 50% of the debt associated with their joint credit card. However, there are some issues with this process that could leave one partner on the hook for more than their fair share.
Using current assets
Another option that many courts consider is using existing marital assets to pay off any joint credit card debt so both parties are free from the debt they accrued together. Under this concept, if the couple has enough assets to pay off the card, the court may require that joint debts are paid off in full so both parties are only responsible for their own debts going forward.
The prospect of trying to untangle debts that could be applied to both parties in a divorce is one of many reasons that you should work with a divorce attorney. This attorney can review your assets, debts and other information to ensure that you are in a position to financially prosper after your marriage is dissolved.