
A marriage is many things, but perhaps first and foremost it is a legally binding contract, tethering two people together and, in many respects, making them responsible for one another. Many prospective clients, when they first meet with me, are not aware that they may be responsible for credit card debt solely in their spouse’s name. “There’s a credit card with $20,000.00 or so debt,” they may say, “but that’s only in my husband’s name.” Unfortunately, if the debt arises during the marriage, it is likely to be each party to the marriage’s ultimate responsibility, regardless of whose name is actually on the credit card itself.
Credit Card Debt
Once married, you are considered a team. And like any team, that means you often share in both successes and disappointments. As marriage is a legal term of art, it also means you have certain responsibilities and obligations that would not apply were you simply in a relationship. One of those is debt. The contract your spouse signs, such as with a credit card company, also binds you in most instances. Yes, even if you are not aware of it. That may not seem fair, but that is the reality. Then, when it comes time to divorce, you may be surprised that you are now responsible for one half of that debt.
Certain Exceptions Apply
A divorce lawyer can review the credit card debt with you and determine whether any exceptions apply. For instance, debt solely in your spouse’s name that pre-dates the marriage may remain their responsibility, at least regarding the portion of the debt that existed at the time of the marriage. However, if the debt was consolidated at some point, then that exception may no longer apply. I have also successfully negotiated or argued before a judge when credit card debt is accrued for something inappropriate, such as buying gifts for a paramour. It may be possible to claw back that type of debt as part of the Marital Settlement Agreement.
Divorce Filing and Credit Card Debt
Filing for divorce generally tolls the credit card debt. Accordingly, once you file, the debt that continues to be placed on your partner’s credit card may no longer be one half your legal responsibility. That is why it is important to consider filing as soon as possible when you realize the relationship is over, as this tolling also assists with your partner’s potential attempts to liquidate, encumber, or otherwise spend down marital assets.
Conclusion
When it comes to marital debt, your partner is capable of binding you to a contract that you are not even aware of, such as with credit card companies. It is important as part of your divorce to determine your share of responsibility for marital debt and to proceed accordingly to minimize your exposure to same.