Couples with a large amount of shared property will have a lot of assets to divide when they divorce. They often have more debts to divide as well, including credit card debt.
Even in cases where both spouses are responsible about their credit card use, they may owe thousands of dollars among the multiple accounts that they have. What happens to your credit cards in a Tennessee divorce?
Most debts are part of your marital estate
The amount that you owe on a credit card, even if it is only in your name, is likely part of your marital estate. Debts accrued during the marriage and for the purpose of supporting the household are typically marital debts that can factor into the division of other property. Even student loans can influence property division in high-asset divorces.
When it comes to shared credit cards, you may need to close accounts or contact the company to remove one spouse from the account. You may have to reach an agreement about who keeps which accounts and even how to divide your rewards benefits.
The best way to handle your shared credit cards will depend on your current financial circumstances. The two of you can potentially reach your own settlement about how you split those debts, or you can litigate and ask a judge to divide them in accordance with state law.
Considering elements that may complicate property division in a high net worth divorce can help you better prepare for the process.
