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What Happens To Your Credit Card Debt In Divorces?

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Woman with piggy bankA 2013 study showed that nearly 40 percent of U.S. households have credit card debt, with an average of $5,700 in debt. When a couple is getting divorced, credit cards are one of the many things that need to be taken care of. Who gets the debt? Who keeps the card?

Like property, debt in Colorado is divided equitably, not necessarily equally. The courts will look at the total assets and debts of the couple, among other factors, to determine what the fairest split would be.

The first step in solving this issue is identifying which debts you are responsible for. Your credit rating and debts are allocated to your name, and the only way to view this is by requesting your credit report from one of the three major reporting bureaus. This report will inform you which debts are yours and which ones you share with your spouse. From there, you can start the process of removing your name from those joint accounts and closing them where necessary.

A word of warning: you should be diligent in paying all your bills, including those you share with your spouse, both before and after your divorce filing. Divorces can get contentious, and if you name is on an account and your spouse stops paying for it, that can hurt your credit. While many card companies will not allow you to close an account with a balance on it, you may be able to have the company freeze any joint accounts to protect your credit until divorce is finalized.

Denver divorce law attorneys assisting clients in Colorado in matters of property and debt division during divorce.