Property division matters often cause conflict between divorcing spouses. People may disagree about what different resources are worth and how to fairly divide them.
Debts can also become complicating factors during divorce proceedings. Credit cards may offer financial flexibility for those with unpredictable income or large gaps between paychecks. However, carrying a balance on a credit card can rapidly increase total debt levels.
Couples preparing for divorce typically need to address their joint financial obligations, including marital credit card balances. Disputes about credit cards are common during property division negotiations.
What debts are divisible?
Frequently, spouses disagree about what credit card balances they need to share. Especially if each spouse had their own accounts, the obligation to repay the other one’s balance could trigger resentment. Generally speaking, under Texas’ community property laws, any debt accrued during the marriage is divisible when spouses divorce, even if the account was in the name of one spouse.
The allocation of debt responsibility can influence the overall distribution of property. Divorcing spouses may need to consider the risk of their husband’s or wife’s future default or bankruptcy making them responsible for the remaining balance owed as they set goals for the property division process. In some cases, taking responsibility for more debts or using marital property to pay off debts may be a better option than trying to get the other spouse to be assigned responsibility for as much debt as possible.
Getting experienced legal guidance in reviewing financial records can help people establish property division goals. Clear goals can make it easier to secure a property division order that lays the foundation for a stable financial future.
