Credit Cards and Divorce
Divorce involves separating your financial assets from your spouse and dividing the assets and debts you currently share. If you and your spouse share bank accounts, credit cards, and other major assets, separating them may initially feel overwhelming.
For example, you may wonder how to navigate shared credit cards and divorce. Working with an experienced attorney can help you protect your rights and determine how to proceed.
Handling Credit Cards During Divorce
Before you do anything involving joint credit cards, speak with your divorce attorney. They can advise on what you can lawfully change without interfering with the division of assets or the divorce proceedings. For example, it may not be wise to start transferring money out of bank accounts, as doing so could be viewed as deceptive.
Your attorney may advise you to start by focusing on the credit cards you are solely responsible for. If you have any such cards, removing your spouse as an authorized user can prevent them from continuing to use money that is technically yours during the divorce. If your spouse has similar cards in your name, they can remove you as a user as well.
Navigating Temporary Support Orders With Shared Finances
If one of you makes significantly more than the other, your divorce settlement agreement may include spousal support requirements. But what do you do in the meantime?
Your attorney can help you and your spouse work out temporary support orders, known as alimony pendente lite, in accordance with your financial situations. This type of support starts after a divorce is filed and lasts until the end of the divorce proceedings, at which point any other support orders would take effect. Instead of needing to share credit cards in divorce without clarity about whose money is whose, you can stick to pre-established terms in a temporary support order and gain the financial resources you need.
Dividing Credit Card Debt Fairly
Navigating credit cards and divorce also involves determining how you will approach joint credit card debt. Your attorney can help you work out an agreement for such debt as soon as possible. Under Pennsylvania law, joint debt is divided equitably, meaning each spouse receives a fair portion of it.
Once you have established how you will approach credit card liability after divorce, it may be wise to have each portion of the debt under only one person’s name instead of continuing to have both names on credit cards. If your name is still on an account and your spouse stops paying, you are still responsible for the debt.
Protecting Your Credit When Divorcing
You also need to take caution regarding your spouse’s financial activities during the divorce. Run your credit report and keep tabs on any new activity under your name. Your spouse’s activity on your joint cards could negatively impact your credit score. Continue to follow up until all debt is refinanced according to your agreement.
It may also be a good idea to freeze your credit to prevent unauthorized activity.
Speak With Karen Ann Ulmer, P.C., Today
If you need assistance navigating credit cards and divorce, an experienced attorney can assist you. Karen Ann Ulmer, P.C., provides legal representation through every stage of the divorce process. Contact us today at (866) 349-4907 for a confidential consultation.
