Money can create a significant burden in any marriage. But when spouses have high levels of credit card debt at the time of their separation, it can create some extra stressors. Credit card companies often don’t care how much a couple’s divorce may cost. For many, their primary concern is getting the payments they’re owed.
Due to these circumstances, it’s often practical for both partners to reduce or get rid of any debt before finalizing their divorce. That’s because both spouses could face severe financial consequences once they enter their single lives.
Luckily, there are ways spouses can tackle their shared debt before it becomes insurmountable.
Debt responsibility of each spouse
Both spouses are typically responsible for debt incurred on joint credit cards. However, if a card is only in one spouse’s name, they generally are the only ones liable for those payments.
For debt incurred by both spouses, there are several methods they can use to tackle it. Here are a few examples:
- Use money from one or more joint savings accounts.
- Cancel credit cards in both spouses’ names and split the balance owed between both of them.
- Use a shared home equity or a line of credit to reduce or eliminate the debt.
- File documents with the court stating individual levels of debt liability.
Money troubles can create added stress
Divorce can be stressful for couples across all income levels. If couples are still dealing with expensive credit card bills, it can leave both of them with a sense of uncertainty and anxiety. Fortunately, there is help available. A knowledgeable legal professional can assist spouses in finding ways to protect themselves during this tumultuous period.