Understanding How Debt and Credit Cards Affect Divorce

 Posted on December 08, 2014 in DIvision of Property

Marriage creates the potential for more than just emotional and familial benefits. There are major financial perks for couples who choose to get married and this is often what drives many happy couples toward marriage in the first place. The advantages include tax benefits, additional incomes, and according to Experian.com, the chance to help each other build credit.

All of these make life a little bit easier when it comes time to pay the bills. But what happens if the marriage turns sour and divorce becomes a reality?

It is always helpful to consult an experienced family lawyer when dealing with the financial intricacies involved in a divorce—especially debt allocation. The areas of the law vary among states and districts, and the results are different for almost every single case.

Splitting up Credit Cards and Debt

Many couples open joint credit card accounts after a marriage, but creditors are not concerned about the marital status of the two names on the account. Remember that any two people can open a joint credit card. The couple must still pay the debt. However, a judge may issue a court order that specifies who is responsible for paying the debt.

Divorcing spouses should develop a plan for their joint credit cards as soon as possible. Many financial experts advise couples to pay outstanding balances before the divorce process completes.

Another—perhaps more reliable—means of ensuring each side pays for the debt they owe is to transfer an appropriate amount of the balance to a credit card owned by each spouse. The couple can then cancel the joint account and stop sharing responsibility.

If you are considering divorce and are looking for an experienced Illinois family law attorney, contact Stock, Carlson & Asso. LLC. With close to 100 years of combined experience, our lawyers can help you find a way through the end of a stressful marriage. Call us today at 630-665-2500.