The average American household has multiple credit cards and carries revolving balances on those accounts. Although it can be expensive to have a balance from month to month on credit cards, many households need that extra money to balance their budget. While it may only be $100 every month or so, the balance that you carry on your credit card can add up to thousands of dollars over time.
When you think about life after divorce, financial concerns are often a major issue. It could be hard to predict what property you will keep in a divorce. Many spouses also worry about what their debts will mean for their financial circumstances after divorce.
Who pays those shared credit card balances with a couple divorces in Indiana?
Debts are part of property division in Indiana
Your marital estate includes not just the income you earned during the marriage and your shared property like your home but also your shared debts, like your mortgage and your credit cards. Even if some of those accounts are only in the name of one spouse, the amount you spent during the marriage will be marital debt.
You and your ex will need to provide the courts with an in-depth list of all of your assets and debts. The courts will look at the big picture, including how much each of you earns and your separate property, when they decide how to divide your debts and assets. The goal of the equitable division process is a fair outcome based on your unique situation.
The courts may have spouses split the debts evenly or assign certain accounts to a specific spouse. They might even require that one spouse pay all of the debt as part of the refinancing process if they keep the house. There is no one solution that always applies to the debts when a couple divorces.
You can still be accountable for those debts
When negotiating your property settlement agreement with your ex, it’s important to understand that if the debt is being at your name or you are a cosigner, a family court order won’t protect you from collection efforts. If your ex filed for bankruptcy after the divorce, those creditors could come after you for those accounts. Your credit could also take a hit if your ex is supposed to pay them but falls far behind.
You may need to factor in what you know of your ex’s financial habits and personality when negotiating arrangements for your debt. Knowing what happens with your property in an Indiana divorce will help you protect yourself.