Credit Card Debt and Family Law in Waukesha, WI
While people going through a divorce frequently do so while carrying credit card debt, most don’t pay much attention to them other than when they’re assigned to a particular spouse. During a divorce case, care should be taken that one spouse isn’t unfairly held responsible for the other’s debts, and that each person is protected under family law in Waukesha WI area if the other doesn’t make payments on their share of the debt.
Credit Card Debts: Assigning Responsibility
In many cases, divorcing couples will assign debts and cards to a particular person. To ensure that joint debts are properly identified, it could be helpful to get each person’s credit report. Doing so can find a variety of debts, even those which may have been concealed from the other person. It may also be beneficial to ensure that any debt not paid in full is assigned to one of the spouses.
Stopping Additional Liability for Debt
When you get a divorce, you should close joint card accounts, or have your name removed from any account that your ex-spouse will continue to use. This won’t absolve you of liability for debts incurred before that point, but it will keep you from being responsible for new debt accrued by your ex-husband or ex-wife. If your former spouse is a co-signer on any of your accounts, you should revoke that authorization as soon as possible.
Keeping Yourself Out of Bankruptcy
After a divorce, it’s not unusual for a spouse to fail to pay old credit card debt. If that person didn’t take steps to cease his or her liability, some joint accounts may remain open -; and both people will still be liable according to Family Law in Waukesha WI. Debt load on cards, late payments and default judgments will appear on credit reports for both spouses. The creditor will be able to pursue both people for payment, penalties, legal fees and interest. Creditors are under no obligation to be fair, and many are not. A divorce decree should have a deadline by which each spouse’s allocated debts should be paid in full, and provide legal avenues if that does not occur.
Some divorce judgments include language that can protect ex-spouses from being left without a legal remedy if the other spouse files for bankruptcy. Ask your Family Law attorney if you can include such a clause in your divorce judgment.
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