Estimated reading time: 3 minutes
One of the most common, and stressful, questions people have during a divorce is: Who is responsible for credit card debt I didn’t even know about?
The answer falls under what the law refers to as marital debt, and while there are general rules, the reality is more nuanced than many people expect.
What Is Marital Debt?
Presumptively, marital debt is divided between both spouses. Just like marital assets, debts incurred during the marriage are generally considered shared responsibilities.
However, that presumption is only the starting point. Courts look closely at the facts surrounding how and why the debt was incurred before deciding how it should be divided.
When Credit Card Debt Is Usually Shared
If one spouse used a credit card during the marriage for expenses that benefited the household, it is more likely that the debt will be divided between both parties — even if one spouse was unaware of the spending at the time.
Examples include:
- Groceries and household necessities
- Items used in the home
- Family travel or vacations
- Everyday living expenses that supported the marital lifestyle
In these situations, courts often find that both spouses benefited from the spending, making it reasonable for the debt to be shared.
When Credit Card Debt May Be Assigned to One Spouse
On the other hand, not all debt incurred during a marriage is treated equally.
If credit card debt was used for purposes that did not benefit the marriage, a court may assign that debt solely to the spouse who incurred it. This often includes spending such as:
- Lavish gifts for a girlfriend or boyfriend
- Extravagant trips taken without the other spouse’s knowledge
- Expenses tied to an affair or secret lifestyle
Because this type of spending provides no benefit to the marital estate, courts are more likely to hold the spending spouse fully responsible for that debt.
Why Marital Debt Is So Fact-Specific
Ultimately, debt division in divorce is a case-by-case, highly fact-sensitive analysis. Courts consider how the debt was incurred, who benefited from it, and whether it was reasonable under the circumstances of the marriage.
That’s why two cases with similar balances can result in very different outcomes.
Get Guidance for Your Specific Situation
If you’re concerned about how credit card debt; especially debt you didn’t know about; will be handled in your divorce, it’s important to get advice tailored to your situation.
At JR Law Group, we help clients understand their financial exposure and advocate for fair debt division based on the facts of their case. If you have questions about marital debt or what to expect, give us a call to discuss your options with clarity and confidence.
Disclaimer – This video is intended for informational purposes only. Nothing in this video is to be considered as either creating an attorney-client relationship between the viewer and JR Law Group or as rendering of legal advice for any specific matter. Viewers are responsible for obtaining such advice from their own legal counsel. No viewer should act or refrain from acting on the basis of any information contained in the video or on JR Law Group’s Website without seeking appropriate legal or other professional advice on the particular facts and circumstances at issue.