How Do You Handle Credit Card Debt in a Divorce?

If you are splitting ways with your spouse and either or both of you have credit card debt, consult with a divorce lawyer about how debt should be handled.

Debt is never a pleasant thing to think about and is an issue that becomes even more complicated if you and your spouse are divorcing. Indeed, if you are divorcing and you, your spouse, or both of you have credit card debt, you may be wondering how that debt will be divided in a divorce. At the law office of John Powell III, P.C., our experienced divorce lawyer can answer all of your questions and provide you with counsel as you navigate the divorce process. Call today for your free consultation.

How is Credit Card Debt Divided in a Divorce?

Texas is a community property state. Essentially, this means that all assets acquired during the marriage by either spouse are jointly owned by both spouses and, at the time of the divorce, those assets must be divided in a manner that’s just and right, or equitable. The same is true of debt. Credit card debt accrued by either spouse during the course of the marriage will likely be considered community debt for which both parties are liable. There may be some exceptions to this. For example:

• If credit card debt was accrued by one party in a way that might be construed as financial or marital misconduct, the other party may not be held liable. For example, if an adulterous spouse accrued credit card debt in order to support their affair, it is unlikely that a court would find the division of this debt to be “equitable.”
• If the debt was accrued by a party while the party was still married but was living separate and apart, the court may consider this debt to be separate.

Of course, in addition to the above examples, a party may also not be held liable for their spouse’s credit card debt (accrued during the course of the marriage) if the parties have a prenuptial agreement that specifies this.

Dividing Credit Card Debt in a Divorce

The court will consider the totality of a couple’s financial situation before making a decision about how to divide property or debts in a way that is equitable. In some cases, the court may decide that a 50/50 split is what is fair and right; in other cases, one party may be ordered to pay more debt or awarded more assets. Because this is at the discretion of the court, it is important to have an experienced attorney on your side who can advocate for you.

Call Our Family and Divorce Lawyer Today

At the office of John Powell III, P.C., our Texas family and divorce lawyer knows that getting saddled with debt at the conclusion of your divorce is the last thing that you want to deal with, especially if you were not the one responsible for accruing the credit card debt. When you work with our family and divorce lawyer, you’ll have an advocate on your side who will work hard to secure a divorce settlement that is fair and just, and that does not unfairly burden you with credit card debt. For a consultation, call John Powell III, P.C. today.