Married couples can accrue credit debt via credit cards or lines of credit. A couple's responsibility to repay any credit debt they accrued during the marriage doesn't disappear should the marriage dissolve. Creditors may often pursue either spouse for the full balance of a credit account through lawsuits, garnishments and even property liens.
Facts
In most states, debts belong only to the legal account holder. If your spouse possesses a credit card that is in his name only, he is the one legally responsible for the debt after the divorce--even if you paid the monthly payments previously or used the card to make purchases. The U.S. Department of the Treasury warns, however, that joint accounts are the legal responsibility of both parties--regardless of the terms stated in the divorce decree. If, for example, you and your ex-spouse held a joint credit card account with a balance, and the judge assigned the debt to your ex-spouse during divorce proceedings, that order wouldn't prevent the credit card company from pursuing you for the debt if your ex-spouse fails to make the payments.
Considerations
The Iowa State University publication, "Divorce Matters, " stipulates that couples going through a divorce should do their best to pay off credit balances before the divorce is final. This provides both parties with a more streamlined divorce, by minimizing arguments over who is responsible for repaying joint credit debts. It also prevents one party from accruing additional debt on the joint account after the divorce and leaving the remaining individual stuck with the bill.
Solution
Creditors don't require the permission of both spouses before closing joint credit accounts--even if those accounts reflect a balance. According to the Federal Trade Commission, either spouse may contact a creditor and request an account closure. Although creditors are not legally required to alter the status of your credit accounts, some companies may work with you and your spouse during a divorce by removing a name from an account or splitting your credit debt into two individual accounts.
Misconceptions
Some individuals fail to realize that, rather than being joint account holders on credit card accounts, they are merely authorized users. Authorized users possess the right to make purchases using an account but are not legally liable for any charges. If you are an authorized user on your spouse's credit card, you don't have to accept responsibility for repaying it. If your spouse is an authorized user on your credit card, however, contacting the credit card issuer and removing her authorization to make purchases can prevent her from leaving you with a high credit card bill.
Warning
The rules concerning divorce and responsibility for debt repayment differ if you and your ex-spouse live in a community property state. In a community property state, any assets accrued by either spouse during the marriage are considered the property of both spouses. Unfortunately, this applies to debts as well. If you live in a community property state, the divorce court may hold you responsible for paying half of any debts your spouse incurs during the marriage--regardless of whether those debts were in your name or not.
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