Most people are familiar with the idea that a divorcing couple will split the marital assets during the divorce process. However, marital debts are not as glamorous as houses, cars, and other valuables, and hence there is usually very little pop-culture mentions about how a divorcing couple will split their liabilities. For example, many divorcing couples have significant credit card debt. Here we will take a brief look at how New York law handles such situations.
Generally speaking credit card debts incurred by married individuals are considered to be the responsibility of both parties as it relates to divorce, and as such are generally equitably distributed. In cases where one partner runs up credit card debt in anticipation of separation or divorce, this situation may be addressed when the remaining marital property is distributed.
In cases where a joint credit card is used, or one partner uses the credit card of another as an authorized user, divorce proceedings do not nullify the contract made between the partner who obtained the credit card and the credit card issuer. As such, one partner agreeing to pay the credit card does not necessarily release the other partner from their agreement with the card issuer. Should the monthly payments not be made as agreed, the issuer may still go after the partner with which the original repayment contract was made.
Are you filing for divorce in New York? Are you familiar with how debts are divided up in a divorce case? Credit card debt can follow you even through a divorce, so be sure to hire an experienced divorce lawyer to help you navigate and understand the process. Our top-rated divorce attorney comes highly recommended. Contact H. Benjamin Perez & Associates, P.C. today for exceptional representation in your divorce case.