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What are options to deal with a joint credit card?

On Behalf of | Mar 2, 2023 | Family Law |

It may not have occurred to you that sharing a credit card with your spouse could be troublesome. However, as you prepare for divorce, you understand that you should try to close out the card as soon as possible.

With an active joint credit account, your spouse could spend a lot of money on the card and stick you with the debt payments following your divorce. The Motley Fool explains some options which may relieve you of further debt worries.

Pay your existing card debt

A straightforward solution is to pay the entire card debt and close out the account before your divorce is complete. This is not an option for all couples, though. It depends on whether you and your spouse have the money to pay your outstanding amounts.

Remove your name

Your spouse may be fine with taking full control of the card, but this option depends on whether your card issuer will remove your name from the account. Your spouse may lack a strong credit history to qualify for a card. You might also have to pay off your share of the card debt before asking the issuer to remove you.

Use balance transfers

If you and your spouse cannot afford a full payment of your card debt, you might be able to transfer your individual debt shares onto your own cards. With a balance transfer, your share of the debt is on your own separate card, so only you can add more money to the balance. You will also not be responsible for the expenses of your spouse.

Check your available options carefully. You may be able to resolve the issue of your joint credit account before it becomes a problem in your post-divorce life.