Who Pays Off Joint Credit Card Debt in Divorce?

A divorce can be a hard time. There are many things to figure out, like who gets what. One of the biggest questions is about money and bills. This page will help you learn about who pays for credit card debt when a marriage ends.

What Is Shared Debt from the Marriage?

A Shared Problem: When you are married, the money you owe is often shared. This is called marital debt or family debt. It is a debt that belongs to both of you.

How a Judge Sees It: A judge will see most debt made during the marriage as a shared bill. It does not matter if the card is in one name or both names. The bill has to be paid.

What makes a debt shared:

• It was made while you were married.
• It was used for family things.
• Things like food, rent, or a car.

Types of shared family debt:

• Credit card bills.
• Money owed on a house.
• Money owed on a car.

Example: Jen and Mike bought a TV on a credit card while they were married. The card was only in Mike’s name. In the divorce, the judge said the TV was for the family, so the debt was shared.

Does It Matter Who Used the Card?

A Judge Looks at Who Spent It: Yes, it can matter who used the card. A judge will look at what was bought. They want to see if the spending helped the family.

Spending for One Person: Sometimes, one person uses a shared card for their own fun. This might be a trip with friends or a costly hobby. If you disagree on bills, you may need help from lawyers who handle divorce disagreements.

How a card can be used:

• To buy food for the family.
• To pay for a family trip.
• To buy clothes for just one person.

What a judge will ask:

• Who used the credit card?
• What did they buy?
• Did it help the whole family?

Example: A card was in both Sam and Beth’s names. Sam used it to buy a new golf cart for himself. The judge made Sam pay for the golf cart debt by himself because it did not help the family.

What About Bills from After We Split Up?

Living in New Homes: Many couples live in different homes for a while before the divorce is done. If you use a shared card during this time, the rule might change. The debt might now be yours alone.

Paying for Your New Life: A judge will likely say you have to pay for what you buy after you move out. If you use a shared card for your new apartment or your own food, that debt is yours. It is not for your old life together.

Spending after you live apart:

• Rent for your new place.
• Food for just you.
• Power and water bills for your new home.

What to think about:

• The date you moved apart.
• What you bought with the card.
• If your ex knew you were spending.

Example: Maria moved out in May. She used a shared credit card to buy a new bed and new chairs for her apartment. The judge said Maria had to pay for those things herself.

Will a Judge Split a Bill Exactly in Half?

Fair Does Not Mean 50-50: A judge wants to split the debt in a way that is fair. Fair does not always mean a 50-50 split. The judge looks at many things to decide what is fair for each person.

What a Judge Looks At: The judge will look at how much money each person makes. The person with a better job might have to pay more of the debt. The goal is to let both people have a fresh start.

What helps a judge decide:

• How much money each person makes.
• How long the marriage lasted.
• If each person is healthy.

Why a split might not be 50-50:

• One person makes a lot more money.
• One person wasted family money.
• One person has to care for the kids more.

Example: One spouse worked and made good money. The other spouse stayed home with the children and has no job. The judge might make the working spouse pay a bigger part of the debt.

What if the Debt Only Helped One Person?

Who Did it Help?: The court will want to know who was helped by the money spent. If a debt was made to buy something that only one person used, that person might have to pay it all. An example is when an ex took out debt in their name only for personal things.

Show the Proof: You can show the judge credit card bills. The bills show what was bought and where. This helps the judge see if the spending helped the family or just one person.

Spending that helps one person:

• Money lost from gambling.
• School costs for one person’s job.
• Money to start a business for one person.

What a judge may want to know:

• Did the other person say yes to the spending?
• Did the spending hurt the family?
• Was the spending a secret from the other person?

Example: Paul used a shared credit card to pay for special classes for his job. He did not tell his wife. The judge said Paul had to pay that debt himself because the classes only helped him.

Can the Bank Make Me Pay for My Ex’s Debt?

The Bank Has Its Own Rules: This is very important to know. The paper from your divorce is a rule for you and your ex. It is not a rule for the bank.

Your Promise to the Bank: When you got the credit card, you made a promise to the bank. If both your names are on the card, the bank can ask either of you to pay all of it. A divorce does not change your promise to the bank.

What this means for you:

• The bank can still call you for money.
• Your credit can be hurt if your ex is late.
• The bank can take you both to court.

How to keep your credit safe:

• Close shared accounts as soon as you can.
• Pay off the card if you can.
• Check the account to see if payments are made.

Example: A judge told Tom to pay a $2,000 credit card bill. Tom did not pay it. The credit card company then called his ex-wife, Sarah, to get the money because her name was also on the card.

What Should We Do with Our Shared Cards Now?

Stop Using Them Today: The first thing to do is stop using all shared cards. Do not make any new purchases. Put the cards in a drawer so you are not tempted to use them.

Make a Plan Together: Talk to your spouse about a plan for these cards. You can learn about how joint accounts work when you are separated to get ideas. It is best to agree on what to do next.

First things you should do:

• Agree to stop all new spending.
• Call the bank to freeze the card.
• Write a list of all your shared debts.

Ways to pay off the balance:

• Use savings to pay the full amount.
• Move the debt to a new card in one name.
• Create a payment plan in your divorce papers.

Example: Kim and Chris decided to get a divorce. They sat down and cut up their shared credit cards. This made sure the bill would not get any bigger while they worked everything out.

How Can I Keep My Credit Safe in a Divorce?

Watch Your Credit Score: Your credit is important for renting a home or buying a car. A divorce can hurt your credit if shared bills are not paid on time. You must watch your accounts.

Keep Good Records: Keep a record of every payment you make on shared debts. If your ex is supposed to pay a bill, check to see if they did. If they miss a payment, you may need to pay it to save your credit.

Ways to protect your credit:

• Check your credit report for free.
• Always pay at least the minimum amount.
• Close every shared account you can.

What to do if your ex is late on a payment:

• Call them and ask them to pay it.
• Pay it yourself to avoid a late mark.
• Tell your lawyer right away.

Example: The divorce papers said Ann’s ex had to pay the car loan. Ann checked online and saw he was late. She paid the bill herself so her credit would not be hurt, then told her lawyer.

Who Helps Us Split Up the Debts?

Lawyers and Judges Help: Your lawyer is there to help you. They will try to help you and your spouse agree on a plan for your debts. If you cannot agree, a judge will make the choice for you.

Be Honest with Your Lawyer: You must give your lawyer all of your money papers, like bank and credit card bills. This helps them fight for what is fair for you. It is best to share everything, even if it is bad. The Michigan divorce lawyers you choose can make a big difference.

People who help with divorce:

• A good divorce lawyer.
• A person who is an expert with money.
• A helper called a mediator.

Papers to give your lawyer:

• A list of all your credit cards.
• The last few bills for each debt.
• Proof of what was bought.

Example: Ben and Lisa could not agree on a big credit card bill. They gave all the bills to their lawyers. The lawyers helped them make a deal to split the bill fairly based on who bought what.

Extra Insights

Getting a New Loan for an Old Debt: Sometimes you have a big shared debt, like a car loan. One person can get a new loan in their name only. They use the new loan to pay off the old shared loan. This removes the other person’s name and keeps their credit safe.

What If a Spouse Hid a Lot of Debt?: Tell your lawyer right away if you find out your spouse has secret debts. Judges do not like secrets about money. The judge might make the spouse who hid the debt pay all of it.

Frequently Asked Questions

What should I do first with our shared credit cards?

You and your spouse should stop using the cards right now. You can also call the bank and ask them to put a hold on the account.

Do I have to pay for my spouse’s secret debt?

If the money was spent on family things, you might have to pay some. If it was for secret personal things, a judge will likely make your spouse pay it all.

What if my ex says they will file for bankruptcy?

If your ex files for bankruptcy, you are not protected. The bank can still make you pay the full amount of any shared debt.

Will closing a shared card hurt my credit?

Closing a card can lower your credit score a small amount. But it is much safer than letting your ex add more debt to the card.

How can we show who bought what?

You can use the credit card bills. They show every store, date, and amount spent, which helps show who bought each item.

I never even used our shared card. Do I have to pay?

Yes, your name on the card means you promised the bank you would pay. You need a judge to order your ex to be the one to pay the bill.

Can we split one bill onto two new cards?

Yes, you can. You can each open a new card in your own name. Then you can move half of the old bill onto each new card.

What about debt from before we got married?

Debt from before you were married is usually your own debt. A judge will not make your spouse pay for it.

My ex was told to pay a bill but they are not. What do I do?

You may need to pay the bill to protect your credit. Then you can tell your lawyer and take your ex back to court to get your money back.

Should we pay off our shared debts before the divorce is done?

Yes, this is a very good idea if you can. It makes the divorce much easier and keeps everyone’s credit safe.

How are doctor bills handled in a divorce?

Doctor bills from when you were married are usually shared family debt. This is true even if the bills were just for one person.

Is Michigan a state where everything is split 50-50?

No, Michigan is a state where things are split fairly. A judge decides what is fair, and it might not be a 50-50 split.

Dealing with shared debt is a big part of any divorce. If you feel lost or have questions, it is very important to get legal help. We can help you see your choices and keep your money safe.

Call or text us at (248) 590-6600 for help. You can also set up a free meeting on our website. Visit ChooseGoldman.com to find out more.