As a married couple, you may come to realize that the use of credit cards is one of the best ways to make purchases and manage your money. However, if you’re preparing for divorce, you may also come to realize that this can be a major sticking point.
There are a variety of ways to manage joint credit card debt in divorce, including the following:
- Pay it off before you divorce: If the divorce process is on the horizon, consider paying off joint credit card debt with money from your joint savings. This allows you to take care of this debt before your divorce, which is sure to bring many other challenges to the forefront. The only issue with this is that you have to make a mutual decision that this is the right solution.
- Split the debt: The best way to do this is through the use of a balance transfer credit card. For example, if you have $15,000 in credit card debt, both individuals can use a balance transfer credit card to take on $7,500 of the balance. The only downfall is the balance transfer fee that you’ll pay.
- Leave it for the divorce process: Maybe you don’t have the money to pay off your joint credit card debt before you divorce. And maybe you don’t have the means to secure a balance transfer credit card. In this case, you should wait for the divorce process so you can learn more about your options.
- File for bankruptcy: If you and your soon-to-be ex-spouse agree that you’re in financial trouble, bankruptcy could be the answer. This allows you to discharge some of your debts, such as credit card balances, so that you don’t have to deal with it in your divorce or the future.
If you’re concerned about joint credit card debt and its impact on the divorce process, consider the options above. There’s a good chance that one of these will suit your financial circumstances.
Once you have a plan in place, you’ll feel better about protecting your legal rights in divorce and setting yourself up for financial success down the road.