AM I RESPONSIBLE FOR MY SPOUSE’S CREDIT CARD DEBT IN VIRGINIA?

When initiating the divorce process, couples must lay all the assets and debts of the marriage “on the table” for division. Perhaps you held exclusively joint accounts and you were aware of credit card debt accumulated during the marriage, or perhaps your spouse had a separate credit card account that you were not aware of. Either way, many credit cards have significant limits, making an outstanding credit card balance a potentially large debt.

So, who must satisfy the outstanding balance(s)? Michelle Hopkins explains below.

Joint Marital Credit Card Debt

Credit card debt may be considered joint in some circumstances:

• The credit card is jointly held in both parties’ names.
• The credit card debt was accrued for marital expenses, such as groceries, children’s clothing, expenses for the marital home, etc.

Sole Credit Card Debt

Credit card debt may be considered sole in some circumstances:

• The credit card is held in one party’s sole name.
• The credit card debt was accrued for personal, non marital expenses such as beauty treatments, entertainment, a sole vacation, etc.

Who Is Responsible For The Balance?

When credit card debt was accumulated for clearly marital expenses such as repairs or maintenance for the marital home, groceries, children’s expenses, etc, the debt is usually divided between the parties. In some cases where one spouse makes significantly more money than the other spouse, they may agree to be solely responsible for the balance during settlement negotiations.

When credit card debt resulted from personal habits or sole expenses, the party who accrued the balance is most often responsible for satisfying the loan.

In some cases there may be multiple outstanding credit card balances. In circumstances wherein the balances are comparable, one party may agree to be responsible for one, and the other party may be responsible for the other. Other couples may choose to divide each balance.

How Is The Balance Divided?

The division may be equal, or pro rata, which means percentages based upon each party’s respective income. Depending upon the parties’ respective incomes and the financial circumstances of the marriage, one may make more sense than the other.

Schedule A Consultation

Michelle Hopkins advises each client regarding their debt to help them walk away from the marriage with a fair division to allow them the ability to get on their feet in the best possible financial circumstances. Contact our office today at 571-248-2210 or info@mhopkinslaw.com to schedule a consultation. Michelle Hopkins and her legal team are ready and waiting to help you!