In California, a community property state, creditors can hold both spouses liable for debt incurred individually during a marriage. No creditor is concerned with a divorce judgment, and only wants to be repaid by the people who are responsible for the loan.
Should I pay off personal debt before divorce?
If you have any joint debt with your spouse and you can afford to, we highly recommend paying off all marital debt, even before you draw up the divorce papers. For example, if you have $5,000 in joint credit card debt, pay it off before the divorce is finalized.
Do you have to pay husbands credit card bills in the divorce?
Does anyone know if this is the case? With regard to each others own personal debts and if the cards are solely in your husbands name then you are not liable for them to the credit card company. However a court could order a payment towards them if he could prove that the debts were jointly raised and you should bear some responsibility.
Can a spouse be responsible for your credit card debt?
You will likely not be responsible for your spouse’s credit card debt if it is not held in your name. The responsibility of joint credit card debt can vary, but most states consider marital debt to be any debt accumulated during the partnership, regardless of whose name appears on the account.
What happens to a joint credit card after a divorce?
Because the new accounts won’t be joint, the transferred amount will be the liability of each individual ex-spouse. As long as the joint card is paid down by the transfers and then closed, this will result in a separation of the two ex-spouses’ debts.
What’s the best way to pay off debt in a divorce?
It’s always best to include an indemnity clause into your divorce agreement. You could petition the court and demand that terms of the divorce agreement be followed, perhaps causing the spouse to face fines or even jail time. The best strategy is to pay off debt your debt before finalizing your divorce.
