Insight

What Happens to Credit Card Debt When I Get a Divorce?

In a community property state like California, credit card debt may be shared between partners.

Credit Card Debt After Divorce
HB

Hossein Berenji

April 3, 2019 04:45 PM

California is a community property state. The things you and your spouse acquire during the marriage belong to you both equally. This includes, among other things, your income, personal home, cars, furniture, and business holdings. You may be surprised to learn that your community property also includes debts. You’re the legal owner of the debts acquired by you and/or your spouse after the wedding.

If you get a divorce, you’re both entitled to half of all property. You’re both also equally liable for the debts that accrued while you were together.

What happens if your spouse racks up thousands of dollars in credit card bills while you were married? Do you share responsibility for paying those debts back after you get a divorce? Generally speaking, the answer is yes. This is true even if you craft a divorce agreement that shifts all of the debt to your spouse. Creditors typically don’t care about divorce decrees. They simply care about getting their hands on the money they’re owed.

Are All Debts Community Property?

No. Only the debts accrued during the marriage are considered community property. Let’s say your spouse had $5,000 in credit card debt before you got married. That $5,000 debt would be considered to be their separate property. Separate property belongs solely to the individual spouse. If you got a divorce, you shouldn’t be burdened with any of that debt.

However, the status of property and debts are not set in stone. It is possible to convert separate property to community property, and vice versa.

Here’s an example. Your spouse had credit card debt of $5,000 before you got married. After the wedding, you were added onto the account as a verified user. It’s now much more difficult to distinguish which of you is responsible for the debt. As a result, a court may decide that your spouse’s personal debt has been converted into community debt that you’re both responsible for repaying.

Crafting a Divorce Agreement to Limit Your Liability For Your Spouse’s Debts

In California, assets and debts are generally owned by both spouses equally. During divorce negotiations, you’re each entitled to one-half of all marital property and liable for one-half of all marital debts. However, it’s up to you to figure out how to divide and allocate community property.

Some spouses divide everything 50/50. This often involves selling assets and splitting the proceeds. Debts are simply divided down the middle.

Other spouses agree to take 100 percent of certain assets and debts in exchange for giving up ownership rights to others. For example, let’s say you want to keep the family home. In order to do so, you may have to agree to assume the entire mortgage and all costs related to the home. You get the home, and your spouse is relieved of marital debt.

You can be creative when negotiating your divorce agreement. Not everything has to be split down the middle. A court will generally approve your agreement if you are both satisfied with the arrangement and it appears to divide assets somewhat equally. You may want to consider giving up ownership rights to some assets in exchange for the relief of marital debt. For example, you may be able to get your spouse to agree to take on full ownership of their credit card debt if you’re willing to part ways with the family car.

Creditors May Not Care About Your Divorce Decree

You may have a divorce agreement in hand that plainly states that your spouse assumed all of the credit card debt acquired during your marriage. This should be enough to protect you when creditors come calling, right?

Not necessarily. Creditors don’t care about your divorce or a court order. They care about the money they’re contractually owed. They’ll go after anyone who is even remotely connected to the debt. In fact, they may not even honor your request to remove your name from an account after a divorce. Their sights are set on repayment.

There are ways to protect yourself from your spouse’s creditors:

  • Maintain separate credit accounts while married
  • Maintain separate bank accounts
  • Don’t add your spouse as a verified user on your accounts, and
  • Close joint accounts before you get a divorce.

Most of all, try to work together and communicate about money issues. Figuring out a game plan together can help to protect you both as you navigate your divorce.

-------------------

Hossein Berenji is an attorney and founder of Berenji & Associates, a Los Angeles family law firm. Mr. Berenji is a lifelong Los Angeles resident and attended prestigious UCLA and Loyola School of Law. He has over 16 years’ experience helping family law litigants.

Related Articles

IN PARTNERSHIP

Steps To Take After an Encino Car Accident


by Andrew L. Shapiro

Hurt in a car accident that wasn’t your fault? You may be able to recover compensation. Call JUSTICENTER Personal Injury Lawyers for a free consultation today.

Two people talk after a car accident

Prop 36 California 2024: California’s Path to Stricter Sentencing and Criminal Justice Reform


by Jennifer Verta

Explore how Prop 36 could shape California's sentencing laws and justice reform.

Illustrated Hands Breaking Chains Against a Bright Red Background

The Struggle Is Real


by Justin Smulison

Businesses are overlooking state and federal laws when downsizing or closing operations, driving a tidal wave of class action lawsuits from former employees.

Silhouetted figure has a tug of war with shadow

California Overhauls Controversial Private Attorneys General Act


by Eric C. Schwettmann and Katherine A. Hren

Enacted 20 years ago, PAGA is well behind the litigation curve in an age where change is always in motion.

Lawyer seated in an empty court

IN PARTNERSHIP

California Car Accident: How To File a Personal Injury Claim


by Robert T. Simon

Several steps are involved in filing a personal injury claim after a car accident in California. Read this article to learn about your legal rights and options.

Two lawyers meet to go over legal case

IN PARTNERSHIP

How to Protect Your Inheritance from Divorce in Ontario


by Usman Sadiq

One lawyer in Canada explains that, although division of assets does not always have to be evenly split, it should be fair, and inheritance is no exception.

Small grey house with red roof under large red umbrella on blue background

IN PARTNERSHIP

What Are the Stages of a Criminal Case in California?


by Nafiz M. Ahmed

Criminal cases in California must follow proper procedures in court. One lawyer outlines each stage of a criminal case to offer guidance to all involved.

Person in grey sweatshirt with hands behind back in handcuffs being arrested by cop

IN PARTNERSHIP

The Parenting Plan


by Derren Ciaglia

Co-parenting considerations should always be taken into account when negotiating Parenting Plans in divorce or paternity matters.

Woman in car looking through window at man hugging child

Divorce in Florida


by Hugo E. Acebo

A Florida family law lawyer highlights the important steps each party should take when facing the complexities of divorce, particularly when faced with decisions surrounding the children.

Painting of father walking with two children

High-Net-Worth Divorce


by Gretchen S. Knight and Jill Spevack Di Sciullo

Many issues can arise during divorce proceedings, particularly for affluent couples. Outlined below are some of the best practices for the most common concerns.

Spouses standing in doorway of home having argument

Filing For Divorce in North Carolina


by Melody J. King

Family law lawyer Melody King answers some of the most important questions individuals may have about filing for divorce in North Carolina.

Illustration of man and woman on paper that has been torn apart

IN PARTNERSHIP

How to File for Divorce


by Natalie R. Rowland

Divorce can be complex in both process and cost. An experienced family law attorney explains how best to file for divorce and outlines considerations to take.

Image of bride and groom on beach with a split down the middle

The Hague Convention and International Custody Battles


by Alexandra Goldstein

One family law lawyer explains how Joe Jonas and Sophie Turner’s celebrity divorce brings The Hague Convention treaty and international child custody battles into the spotlight.

Man and woman celebrities wearing black and standing for photo

IN PARTNERSHIP

Cryptocurrency and Divorce


by Crystal Espinosa Buit

One lawyer explains how cryptocurrency, the fastest growing investment form, can impact assets in a divorce and why it should not be ignored in divorce proceedings.

Pixelated image of paper money bill

Five Tips for Business Owners Facing Divorce


by Brittany A. Brown

When married couples have entered into joint business ventures find themselves facing divorce, it is important that they heed these five steps to ensure amicable resolution.

People standing in opposite circles forming Venn diagram

IN PARTNERSHIP

How To Find a Good Divorce Lawyer


by Best Lawyers

To navigate a divorce, which is inherently a complex legal landscape, finding the right divorce lawyer can make all the difference in the outcome of any case.

Bride and groom figurines on top of a wedding cake

Trending Articles

2025 Best Lawyers Awards Announced: Honoring Outstanding Legal Professionals Across the U.S.


by Jennifer Verta

Introducing the 31st edition of The Best Lawyers in America and the fifth edition of Best Lawyers: Ones to Watch in America.

Digital map of the United States illuminated by numerous bright lights

Unveiling the 2025 Best Lawyers Awards Canada: Celebrating Legal Excellence


by Jennifer Verta

Presenting the 19th edition of The Best Lawyers in Canada and the 4th edition of Best Lawyers: Ones to Watch in Canada.

Digital map of Canadathis on illuminated by numerous bright lights

Legal Distinction on Display: 15th Edition of The Best Lawyers in France™


by Best Lawyers

The industry’s best lawyers and firms working in France are revealed in the newly released, comprehensive the 15th Edition of The Best Lawyers in France™.

French flag in front of country's outline

Announcing the 13th Edition of Best Lawyers Rankings in the United Kingdom


by Best Lawyers

Best Lawyers is proud to announce the newest edition of legal rankings in the United Kingdom, marking the 13th consecutive edition of awards in the country.

British flag in front of country's outline

Announcing the 16th Edition of the Best Lawyers in Germany Rankings


by Best Lawyers

Best Lawyers announces the 16th edition of The Best Lawyers in Germany™, featuring a unique set of rankings that highlights Germany's top legal talent.

German flag in front of country's outline

Prop 36 California 2024: California’s Path to Stricter Sentencing and Criminal Justice Reform


by Jennifer Verta

Explore how Prop 36 could shape California's sentencing laws and justice reform.

Illustrated Hands Breaking Chains Against a Bright Red Background

Celebrating Excellence in Law: 11th Edition of Best Lawyers in Italy™


by Best Lawyers

Best Lawyers announces the 11th edition of The Best Lawyers in Italy™, which features an elite list of awards showcasing Italy's current legal talent.

Italian flag in front of country's outline

Combating Nuclear Verdicts: Empirically Supported Strategies to Deflate the Effects of Anchoring Bias


by Sloan L. Abernathy

Sometimes a verdict can be the difference between amicability and nuclear level developments. But what is anchoring bias and how can strategy combat this?

Lawyer speaking in courtroom with crowd and judge in the foreground

Things to Do Before a Car Accident Happens to You


by Ellie Shaffer

In a car accident, certain things are beyond the point of no return, while some are well within an individual's control. Here's how to stay legally prepared.

Car dashcam recording street ahead

The Push and Pitfalls of New York’s Attempt to Expand Wrongful Death Recovery


by Elizabeth M. Midgley and V. Christopher Potenza

The New York State Legislature recently went about updating certain wrongful death provisions and how they can be carried out in the future. Here's the latest.

Red tape blocking off a section of street

Tampa Appeals Court ‘Sends Clear Message,” Ensuring School Tax Referendum Stays on Ballot


by Gregory Sirico

Hillsborough County's tax referendum is back on the 2024 ballot, promising $177 million for schools and empowering residents to decide the future of education.

Graduation cap in air surrounded by pencils and money

Find the Best Lawyers for Your Needs


by Jennifer Verta

Discover how Best Lawyers simplifies the attorney search process.

A focused woman with dark hair wearing a green top and beige blazer, working on a tablet in a dimly

Key Developments and Trends in U.S. Commercial Litigation


by Justin Smulison

Whether it's multibillion-dollar water cleanliness verdicts or college athletes vying for the right to compensation, the state of litigation remains strong.

Basketball sits in front of stacks of money

Is Premises Liability the Same as Negligence?


by Jeremy Wilson and Taylor Rodney Marks

In today's age, we are always on the move, often inhabiting spaces we don't own. But what happens when someone else's property injures you or someone you know?

A pair of silhouetted legs falling down a hole with yellow background

Woman on a Mission


by Rebecca Blackwell

Baker Botts partner and intellectual property chair Christa Brown-Sanford discusses how she juggles work, personal life, being a mentor and leadership duties.

Woman in green dress crossing her arms and posing for headshot

Best Lawyers Celebrates Women in the Law: Ninth Edition


by Alliccia Odeyemi

Released in both print and digital form, Best Lawyers Ninth Edition of Women in the Law features stories of inspiring leadership and timely legal issues.

Lawyer in green dress stands with hands on table and cityscape in background