Divorce can be stressful enough without the added worry of how shared debt will be handled. For many couples, one of the most confusing aspects of divorce is figuring out what happens to credit card balances. While it may seem like credit card debt would simply follow whoever’s name is on the account, the reality is often more complicated. Read on and reach out to a Rochester divorce lawyer from Lacy Katzen LLP to learn how credit card debt is traditionally divided in a divorce and how our legal team can work to safeguard your interests.
Is credit card debt considered marital debt in New York?
In New York, divorce courts apply the principle of equitable distribution when dividing property and debt. This means that marital assets and liabilities are divided fairly, though not necessarily equally. Credit card debt that was accumulated during the marriage is generally considered marital debt, regardless of whose name appears on the credit card account. If the debt was incurred for household expenses, family vacations, or other joint purposes, it is usually treated as a shared responsibility.
On the other hand, if one spouse racked up credit card debt for purely personal reasons, such as lavish spending on a hobby or gifts for someone outside the marriage, the court might assign that debt solely to that spouse.
What factors will the court consider when dividing credit card debt?
Judges look at several factors when determining who should be responsible for credit card debt after a divorce. They may review the purpose of the charges and when they were made. For example, debt accumulated after the couple decided to separate may be seen differently than debt that piled up while the marriage was still intact.
The court might also consider each spouse’s income, financial resources, and ability to pay. If one spouse earns significantly more than the other, they might be expected to shoulder a larger share of the debt. Additionally, the court will examine whether either spouse acted recklessly or engaged in wasteful spending. If there is evidence that one spouse misused credit or acted irresponsibly, the court could hold that person accountable for a greater portion of the debt. It’s not always a simple matter of splitting everything down the middle.
How can a divorce attorney help protect your financial interests?
A skilled divorce attorney can review your financial records, help you understand your rights, and advocate for a fair outcome. Your attorney can also work to negotiate a settlement that minimizes future disputes. If your case ends up in court, having an experienced lawyer by your side ensures that your side of the story is presented clearly and effectively.
Ultimately, the goal is to protect your financial stability and help you move forward with confidence. If you have additional questions or need an attorney who can effectively defend your interests, simply contact Lacy Katzen LLP today.
