How Does Credit Card Debt Complicate a Divorce?
Credit card debt has the ability to impact your rights in marital property division and your ability to recover from a divorce in Norcross.
When getting a divorce in Gwinnett County, issues pertaining to money and property have the potential to impact your ability to recover financially in the aftermath. This is particularly true when it comes to dealing with credit card debts. As part of your divorce planning, it is important to be aware of how these debts are typically handled in court and some of the options which may be available.
Dividing Credit Card Debt in Gwinnett County Divorce
Regardless of the amount of time you were married or the amount of income you and your spouse earned, issues pertaining to money and property are likely to be one of the most important matters dealt with in your divorce. Under the Georgia Code, any homes, cars, household belongings, or money in financial accounts that accumulated over the course of your marriage must be divided between you and your spouse. You will also need to divide any marital debts you have. This includes mortgages, personal loans, and credit card balances.
Rather than simply splitting everything evenly, Gwinnett County courts aim for a more equitable division. This means that the judge will consider certain factors in determining what is fair to both parties involved. These factors include:
- The amount of time you were married;
- Each spouse’s current income and earning potential;
- Their individual contributions to the marriage;
- Their contributions in regards to accumulating debts.
Dealing with Credit Card Debt in Your Divorce
When you file your divorce petition with the Gwinnett County Court, you will need to submit a financial declaration. This should list all your individual and marital property and assets, as well as your debts. To prepare for this, one of the first steps you should take when planning a divorce is to make a detailed list of all joint debts and get statements showing current balances. To prevent any additional charges, you should also close all joint credit card accounts you and your spouse possess. (You may want to open up an individual account in your name only as a way of re-establishing your credit.)
Being saddled with heavy credit card debts as part of your divorce settlement is something you want to avoid. There are several options in dealing with the situation:
- Pay off all credit card balances prior to filing for your divorce;
- Dispute liability for amounts you are not responsible for or did not benefit from;
- Surrender your rights to certain marital property to eliminate your debts;
- Negotiate payment of credit card debts as part of any spousal support settlements.
Our Gwinnett County Divorce Attorneys are Here to Help
At Zimmerman & Associates, we can address issues pertaining to credit card debts in your divorce while ensuring you get the maximum amount in any final settlements or orders issued. Call or contact our Norcross divorce attorneys online to request a consultation today.