What Happens to Joint Credit Cards When You Divorce?

What Happens to Joint Credit Cards When You Divorce?

Divorce can be a complex process, especially when it comes to financial matters. One area of concern that often arises during divorce proceedings is the management of joint credit card accounts. What happens to these shared financial obligations? Who is responsible for the debt and repayments? How can you protect your credit score? This article will address these critical questions and provide insight into how you can handle joint credit cards when going through a divorce.

Key Takeaways:

  1. Cancellation of Joint Credit Cards:

    • Advisable for a fresh start and prevention of further debt accumulation.
    • Options include authorized user removal, conversion of true joint cards, balance transfer, or closing paid balance accounts.
  2. Management of Joint Credit Card Bills:

    • Importance of timely monthly payments to protect credit scores.
    • Drafting a written agreement to specify each spouse's responsibility for debt payment.
  3. Keeping Joint Credit Account Open:

    • Could be practical for child-related expenses or managing a family business with clear, written agreements on usage and payments.
  4. Division of Credit Card Perks:

    • Bonus points and rewards as marital property to be divided during the divorce settlement.
  5. Handling of Joint Credit Card Debt:

    • Equitable distribution of debt based on individual circumstances in certain states.
    • Seeking legal guidance to navigate the complexities of closing joint credit card accounts.

Should You Cancel a Joint Credit Card Account?

If you are looking for a true fresh start, one of the best options is to cancel your joint credit card account.

This action prevents either spouse from accumulating additional debt, which could lead to contentious financial disputes. Closing these accounts creates a clear separation of financial responsibilities, making it easier to divide the existing debt as part of the divorce settlement.

There are several options to consider when closing joint credit card accounts:

  1. Authorized User Removal: If the credit card account is solely in your name, and your spouse is listed as an authorized user, you can contact the credit card company to remove them as an authorized user. This effectively cuts off their access to the account.
  2. True Joint Cards: In the case of a genuine joint credit card account, where both spouses' names are on the card, the spouse who wishes to retain usage of the card should contact the credit card company directly to explore options for converting the account. The process may involve closing the joint account and opening a new one in an individual's name, often with both parties required to co-sign the necessary documents.
  3. Balance Transfer or Debt Consolidation: Transferring the balance of a joint credit card to a new account in only one person's name can be an effective way to separate finances. This strategy can help prevent any negative impact on your credit score while ensuring a clear division of financial responsibilities.
  4. Closing Joint Accounts with Paid Balances: Once a joint credit card has been paid off, closing the account can signify the completion of financial ties. However, it's crucial to approach this step thoughtfully, as closing an account can impact your credit utilization ratio and the length of your credit history.

Managing Joint Credit Card Bills

To protect your credit during a divorce, it's essential to ensure that monthly credit card payments are made promptly. Disputes over credit card bills are not uncommon, especially when one spouse believes the other has incurred additional charges.

To safeguard your financial well-being, consider drafting a written agreement that specifies each spouse's responsibility for paying off the debt. Your respective attorneys can create this written agreement and should outline the portion each party is responsible for, whether it's a 50/50 split or a distribution based on the debt accrued by each spouse. Having a written agreement can prove invaluable, especially if disagreements arise.

This written agreement should also include a timeframe for settling the debt. For example, you and your spouse may agree to pay off the credit card within a specific period. Having this arrangement in writing can be crucial in case one party fails to honor their obligations.

Should You Keep a Joint Credit Account Open During and After Divorce?

It depends. In certain situations, keeping a joint credit card account open may be the most practical choice. This could be the case when both spouses rely on the joint card for various reasons, such as covering child-related expenses or managing a family business. However, even in such scenarios, it's crucial to establish clear, written agreements regarding card usage and payments to prevent financial complications.

For example, if a joint credit card is used for family business expenses, the written agreement should explicitly state that only business-related charges can be made using the card. These agreements help maintain financial transparency and protect both parties from potential issues.

Dividing Your Credit Card Perks

During a divorce, don't overlook the accumulated bonus points and rewards associated with your joint credit cards. These points and perks hold value as marital property and can translate into significant benefits, such as airline tickets and hotel stays. Just like other assets, these rewards can be negotiated and divided as part of the divorce settlement. Some points can even be converted into cash to help pay down joint debt.

What Happens to Joint Credit Card Debt?

In states that follow the principle of equitable distribution, joint credit card debt is typically divided fairly between both parties during the divorce. This means that each spouse is responsible for a portion of the debt based on various factors, such as their individual contributions to the debt and their financial circumstances.

The court may consider factors such as the duration of the marriage, each spouse's financial resources, and their ability to pay off the debt. For example, if one spouse has a significantly higher income than the other, the court may allocate a larger share of the debt to that spouse. Conversely, if one party is found to have accumulated more debt through reckless spending, they may be assigned a greater portion of the debt as a penalty.

Contact a NJ Divorce Lawyer Today

Navigating the closure of joint credit card accounts can be complex, and it's essential to understand the implications of each option. Seeking guidance from a knowledgeable divorce attorney can provide valuable insights into the best approach for your specific circumstances. At Ziegler Law Group, LLC, our team of experienced attorneys is dedicated to helping you navigate the complexities of divorce with clarity and confidence. Contact us today at 973-533-1100 or by filling out the contact form for legal assistance tailored to your unique needs.


  1. Should I cancel a joint credit card account during a divorce?

    • Yes, it's advisable to cancel joint credit card accounts to prevent further debt accumulation and create a clear separation of financial responsibilities.
  2. How can joint credit card bills be managed during a divorce?

    • Ensuring timely monthly payments and drafting a written agreement specifying each spouse's responsibility for debt payment can help manage joint credit card bills.
  3. Is it advisable to keep a joint credit account open post-divorce?

    • It depends on the situation. In cases where a joint credit account is used for child-related expenses or managing a family business, it might be practical with clear, written agreements on usage and payments.
  4. How are credit card perks divided during a divorce?

    • Credit card perks are considered marital property and can be negotiated and divided as part of the divorce settlement.
  5. How is joint credit card debt handled during a divorce?

    • In states with equitable distribution, debt is divided fairly based on various factors such as individual contributions to the debt and financial circumstances.

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