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How is credit card debt divided?

On Behalf of | Oct 8, 2020 | Property Division |

Property division in a divorce is not just for assets. The court will also expect you to divide your debts, including credit card debt.

Forbes explains the issue with the court dividing your debts or you and your spouse reaching an agreement about debt division is that these things do not supersede the agreement you made with your creditors.

Your contract

When you get a credit card, you sign an agreement to pay that debt. Even the court ruling assigning responsibility to one of you does not void this original contract. So, if the court says your former spouse has to pay the credit card debt, but your name is also on those cards, then legally, your lender can still hold you accountable. If your spouse does not pay, your credit will take a hit and the lender could begin collections against you.

The exception

The only exception is debt you acquired prior to your marriage and that is in your name only. The court will automatically assign this debt to you in most cases. Your lenders cannot go after your spouse for repayment either.

The court

Remember that Texas is a community property state, so the court will divide marital debts according to those rules. This could also include holding you responsible to make payments on a debt that falls under the exception. For example, if your spouse had a credit card prior to your marriage, but used that card to pay for a marital asset, the court could hold you liable to repay at least a portion of the car balance since you benefited from it.


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