Divorce can offer emotional and physical freedom to Tennessee couples, but it doesn’t always offer financial freedom. Two incomes are typically reduced to one, with many people facing financial challenges. Credit card debt may be an area of contention, especially if one spouse is ordered to pay down the debt and refuses to do so. The other party may think that he or she is off the hook, but in fact continues to share the responsibility of making the monthly payments even after a divorce.
Even if a divorce decree orders one of the parties to pay off the debt, both are still responsible for making the payments. If there are delinquent payments, the other party’s credit score may be affected. Also, if there are joint accounts, the ex-spouse can continue to accumulate debt on the credit card until it is closed or converted into an individual account.
This is why many people may choose to open an individual account during their marriage. The person who opens the account bears the sole responsibility and the other spouse won’t be able to hurt the person’s credit. However, it may be difficult for someone to qualify for this type of account without the other spouse’s income. No matter what type of account a person chooses, it’s a good idea to periodically check one’s credit report regularly for any discrepancies.
Divorces can be very expensive, which means that many couples must deal with monetary issues during this already difficult time. Bankruptcy can help a divorced person start a new life free of financial burdens. Learn more about the options available for managing credit card debt.
Source: FindLaw, “Credit and Divorce,” accessed on Aug. 23, 2014
Source: FindLaw, “Credit and Divorce,” accessed on Aug. 23, 2014
