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Divorce And Family Law Attorney

What happens to your credit cards in a Texas divorce?

Combining your finances when you get married will inevitably lead to challenges when you file for divorce. Obviously, you and your ex will have to split your property with one another, and you will likely disagree about who gets to keep certain property.

Another serious concern will be your financial obligations or debts. The chances are good that you have credit card debt and other forms of personal debt that you took on during your marriage. Some of those accounts may be joint, and others may belong to just one spouse.

What happens to credit card balances and other debts in a Texas divorce?

Debt is also part of your marital estate

Even if the credit cards or accounts are in one spouse’s name, the balance owed is likely the responsibility of both spouses. Community property laws require that the courts look not at the name on the account but rather at the date the couple acquired the debt and the reason they owe the debt.

If your ex maxed out the credit card while cheating on you or going on a shopping spree the same day that they filed for divorce, you could potentially ask the courts to exclude those debts from property division proceedings. Debts accrued to reduce your marital estate are a form of wasteful spending intended to punish you.

However, debts from during your marriage, including credit cards used to pay utilities or for regular household expenses, will likely factor into property division proceedings even if only one spouse is technically an account holder. Knowing what will happen with your debts will make it easier for you to negotiate property division matters as you prepare for a Texas divorce.