Dividing debt during a divorce can be just as complex as dividing assets. Joint credit cards, in particular, raise important concerns. Who remains responsible for the outstanding balance? Can a creditor pursue you for purchases you didn’t authorize?
How joint credit cards function in marriage
When you open a joint credit card account, both individuals assume full financial responsibility. Every charge—regardless of who made it—is legally attributed to both parties. Even if one spouse was unaware of certain purchases, creditors can still demand repayment from either person. This shared liability persists unless the account is formally closed or refinanced under a single name.
How courts address joint debt
In New Jersey, courts strive for equitable—not necessarily equal—distribution of debt. Judges evaluate several factors, including each spouse’s income, the intent behind the debt, and who ultimately benefited. If one party used the card for personal or frivolous expenses, the court might assign that debt solely to them. However, creditors remain legally permitted to collect from anyone listed on the account, regardless of what the court orders.
How to protect your financial interests
As soon as divorce proceedings begin, it’s wise to freeze or close joint credit accounts to prevent new charges. Request comprehensive account statements to identify all liabilities. If feasible, pay off the balance or transfer it to an individual account. Be sure any debt payment agreements are documented clearly in the divorce settlement to avoid future disputes.
Remaining financially connected through joint debt can lead to long-term issues. Resolving joint credit card obligations early helps prevent complications and allows you to establish financial independence. Monitor your credit reports post-divorce to ensure your name isn’t attached to old accounts.
