Many New York households carry credit card debt. If you’re considering divorce and you have one or more credit card balances to pay off, you can take steps now to minimize or eliminate your exposure to jointly-held credit card debt that can make a divorce settlement more difficult and potentially harm to your credit balance.
First, apply for a major credit card in your name only, if possible. Your card can be a valuable tool in building your life post-divorce. It also makes it easier to transfer a balance from a joint card.
Next, know which spouse’s name is on each credit card. Make a list of all your cards, and then download your free credit report from a source like Equifax, Experian, or TransUnion to see whose name is on which card. Then, make a list of the current balances on each card.
After speaking to your attorney, and if it is possible to do so, sit down with your spouse and talk about how to handle the credit card debt. The easiest way is to pay off as many credit cards as possible before you file for divorce. Otherwise, consider dividing up the debt, transferring each spouse’s share to a card held solely in that spouse’s name, and closing the joint accounts. If you and your spouse cannot agree, work with a mediator to reach an agreement.
At the Law Offices of Paul A. Boronow, our Long Island divorce attorneys help each client negotiate a divorce settlement that protects their specific interests and focuses on a stable financial future. Contact us today to learn more.