Dividing Credit Card Debt in Cumming

Divorcing couples are often concerned about how they will divide their marital property. They sometimes do not consider that they must also divide their marital debt.

Significant debt can substantially decrease the net value of a couple’s property. In addition, being responsible for paying off all or some of the marital debt can delay your ability to get back on your feet after a divorce.

Speak with an experienced division of assets attorney about dividing credit card debt in Cumming when you divorce. Although you cannot escape your responsibility for marital credit card debt, you can limit your risk and ensure that debt repayment does not impoverish you as you begin your new life as a single person.

Both Spouses Are Responsible for Marital Debt

Married couples have equal rights to all the property either spouse acquires during the marriage. Even when one spouse buys something for themselves the other spouse has an equal right to it. If the spouse paid for the item with a credit card, the other spouse is as responsible for the debt as the spouse who bought the item.

Sometimes married couples treat some expenditures as separate. A spouse might have a credit card in their name only and use it for personal expenditures, not shared expenses. One of our firm’s Cumming attorneys can argue that the other spouse should not be responsible for any of that incurred credit card debt.

Additionally, credit card debt that one spouse brought into the marriage is not considered marital debt. The spouse who incurred the debt would be responsible for paying it.

How Judges Allocate Debt

Numerous factors could influence how a judge decides to allocate marital debt. The judge would review why the couple incurred the debt, which spouse made the expenditure if it was not a joint purchase and other issues that seem relevant. A Cumming attorney can ensure the judge is aware of factors that might sway the court to allocate more credit card debt to the other spouse.

A judge would also consider which spouse is in the best position to pay the credit card debt. If one spouse receives the family home, they might have to refinance the mortgage, put it in their name, and be solely responsible for future mortgage payments. Allocating the couple’s credit card debt to the other spouse might make sense in this scenario.

Sometimes a couple can extinguish their credit card debt during the divorce process. When the couple has sufficient cash to do this or can sell assets like a boat or extra vehicle, it is often worthwhile. It makes for a cleaner calculation of the relative value of marital property and allows each spouse a fresh start after the divorce.

The Impact of Divorce on Your Credit

When a credit card is in your name only, the payment history is your payment history. Even if the debt was assigned to your spouse in the divorce, if the card is in your name, late or missed payments impact your credit. The card company might contact you for payment even though the divorce decree makes the debt your spouse’s responsibility.

When a credit card is in both spouses’ names, the credit card company could seek payment from either spouse. This is true even when the divorce decree specifies that one spouse is responsible for the debt. A default impacts both spouses’ credit.

Our Cumming attorneys pay careful attention to these issues when negotiating a property settlement and credit card debt allocation. Protecting your credit and ensuring that you will be eligible for credit when you need it in the future is a critical but sometimes overlooked aspect of property division.

Rely on a Cumming Attorney to Manage Credit Card Debt Division in Divorce

A divorce involves splitting the marital property and the couple’s debts. Ensuring the allocation of debt is fair is a critical part of divorce negotiations.

Mistakes or oversights in dividing debt can impact you for years. Work with a legal team with the skills to prevent unintended consequences when dividing credit card debt in Cumming. Reach out to the Atlanta Divorce Law Group today to schedule a consultation.

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