When you get married, a new life is created. Many things get merged into one. An example of this is your finances. Some couples choose to share bank accounts or credit cards, but what happens to your joint credit cards when you get divorced? If you are facing a divorce, the distribution of finances could be the most stressful aspect of the process. Contact a Suffolk County divorce & separation attorney for help with your case.
What happens to joint credit cards when you get divorced?
You may be navigating one of divorce’s highest areas of conflict. Likely, you have a lot of questions regarding how to best proceed with your finances, including maintenance of joint credit cards. You probably want to protect your credit, but are unsure who is responsible for payments after the divorce. You have several options. You may want to cancel the card, continue sharing the card, or pay off the card entirely.
What are important factors to consider?
When canceling a card, you should consider a few things. Many credit card company policies vary, so you will want to talk to the company directly to find out your options. For example, you may be able to close the account entirely, take your spouse off the account or create two separate but new accounts. Factors like points, rewards, and bills on autopay all matter when making this decision.
If you decide it’s best to keep the account open, you may want to work with an experienced attorney to draft an agreement of terms and conditions. It is important to make sure that payments remain up to date to protect your credit. Your attorney can help determine the allocation of payments and debt. This could protect you in case your spouse does not end up paying for his or her share of the bargain. Your legal written agreement may enable you to enforce payment through a court.
In some circumstances, keeping your credit card open may be the best choice. You may own a business together, pay for child-related expenses with that card, or need to avoid negative impacts on your credit.
Consider the bonus points and travel perks on that credit card. These may count as assets that amount to large sums of money. These assets can be negotiated, possibly converted into dollar amounts, and potentially used to pay down debt.
If you are facing a divorce and have concerns over how to handle your finances, speak with counsel now. You can trust that your concerns will be thoroughly handled with The Law Offices of Susan A. Kassel, P.C.