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Who Pays Credit Card Debt When a Marriage Ends?

Created: On June 24, 2009 @ 7:18 pm In

America has been preoccupied with the marital breakup of Jon and Kate Gosselin, stars of the hit reality TV show “Jon and Kate Plus 8,” which follows them and their brood of eight kids (twins and sextuplets).

Not only are their poor kids at the center of all the media attention surrounding the split, but the couple will also be forced to deal with the unpleasant task of splitting their assets, setting up a plan to provide for their children, and deciding who will pay off any debt they owe. Who knows whether or not the Gosselins owe a lot of debt, but let’s take a look at what happens to [1] credit card debt when a marriage ends.

Credit Card Debt May Be Both Spouses’ Responsibility

Credit card debt for a jointly-held account generally will be the responsibility of both you and your ex, even if you didn’t know anything about the account. If you have joint accounts, it’s best to work together to pay them off or split the balances and transfer them to individual accounts in each of your names. Don’t forget to cancel those joint cards. In community property states you could also be liable for debts held individually by your ex.

Debt Help for the Financially Challenged

If you are put in the unfortunate position of being left to clean up your ex-spouse’s financial mess and are having trouble managing your [2] debt, help from a credit counselor may be needed to set up a debt reduction plan. Keep careful records about your debt payments and any purchases you’ve made since the split. File any necessary documents with the divorce court that shows which debts you are responsible for paying. Stick with a [3] debt reduction plan so that any financial problems related to the divorce don’t send you into bankruptcy.

Article printed from DebtHelp.com Blog: http://www.debthelp.com/blog

URL to article: http://www.debthelp.com/blog/2009/06/24/who-pays-credit-card-debt-when-a-marriage-ends/

URLs in this post:
[1] credit card debt : http://www.creditcards.com/credit-card-news/dividing-credit-card-debt-divorce-1282.php
[2] debt, help : http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre26.shtm
[3] debt reduction plan : http://www.credit.com/products/debt/Debt-Reduction-Do-It-Yourself.jsp