Aerial drone shot of a residential neighborhood and community pond in Texas.

Pearland Legal Blog

Family Law & Estate Planning Attorney

When facing a family law, estate law or other legal matter, it is important to work with an experienced attorney who can help you understand your options and protect your interests. At The Powell Law Firm, we have more than 20 years of experience protecting people in Pearland, Houston and the surrounding area in Texas.

Get In Touch With Us Today

November 26, 2020

|

On behalf of The Powell Law Firm

| Family Law

How Do You Handle Credit Card Debt in a Divorce?

If you are splitting ways with your spouse and either or both of you have credit card debt, consult with a divorce lawyer about how debt should be handled.

Debt is never a pleasant thing to think about and is an issue that becomes even more complicated if you and your spouse are divorcing. Indeed, if you are divorcing and you, your spouse, or both of you have credit card debt, you may be wondering how that debt will be divided in a divorce. At the law office of The Powell Law Firm, our experienced divorce lawyer can answer all of your questions and provide you with counsel as you navigate the divorce process. Call today for your free consultation.

How is Credit Card Debt Divided in a Divorce?

Texas is a community property state. Essentially, this means that all assets acquired during the marriage by either spouse are jointly owned by both spouses and, at the time of the divorce, those assets must be divided in a manner that’s just and right, or equitable. The same is true of debt. Credit card debt accrued by either spouse during the course of the marriage will likely be considered community debt for which both parties are liable. There may be some exceptions to this. For example:

  • If credit card debt was accrued by one party in a way that might be construed as financial or marital misconduct, the other party may not be held liable. For example, if an adulterous spouse accrued credit card debt in order to support their affair, it is unlikely that a court would find the division of this debt to be “equitable.”
  • If the debt was accrued by a party while the party was still married but was living separate and apart, the court may consider this debt to be separate.

Of course, in addition to the above examples, a party may also not be held liable for their spouse’s credit card debt (accrued during the course of the marriage) if the parties have a prenuptial agreement that specifies this.

Dividing Credit Card Debt in a Divorce

The court will consider the totality of a couple’s financial situation before making a decision about how to divide property or debts in a way that is equitable. In some cases, the court may decide that a 50/50 split is what is fair and right; in other cases, one party may be ordered to pay more debt or awarded more assets. Because this is at the discretion of the court, it is important to have an experienced attorney on your side who can advocate for you.

Call Our Family and Divorce Lawyer Today

At the office of The Powell Law Firm, our Texas family and divorce lawyer knows that getting saddled with debt at the conclusion of your divorce is the last thing that you want to deal with, especially if you were not the one responsible for accruing the credit card debt. When you work with our family and divorce lawyer, you’ll have an advocate on your side who will work hard to secure a divorce settlement that is fair and just, and that does not unfairly burden you with credit card debt. For a consultation, call The Powell Law Firm today.

Get In Touch With Us Today
Request a Consultation

To schedule a meeting with an attorney, please call 832-850-6095 or complete this contact form. We’ll be in touch with you as soon as possible.

Fields marked with an asterisk (*) are required.

Disclaimer

What Our Clients
Have To Say

  • “I wanted to take the time to thank you [John Powell III] for helping me through a tough time in my life. Your guidance and voice of reason really helped me more than you will ever know. I had a previous attorney that I felt could have really cared less about me or the situation. Once on board with you, I felt an immediate difference and I was thankful for your quick response. I could not have finished this process without you and I am glad you were able to have so much hands on time with me. Again, thank you for everything you did for me and my son!”

    (S.R.)

  • “John Powell III was very helpful through the entire process of my divorce which involved a custody fight over my 3-year-old daughter. Mr. Powell has a strong working rapport with the Brazoria County family court. He was very patient, walking me through every step, knowing what to expect from my wife's attorney. We were ultimately successful and I would highly recommend him. As for my daughter, she is doing great. She has advanced to the preschool 2 class early, she is now 3.5 and now goes to school with the 4-5 year old's. Her emotional and behavioral issues have disappeared. Thanks to Mr. Powell's hard work my daughter will have a great chance at life.”

    (K.K.)

  • “Just wanted to say thanks for handling my post-divorce property division issue in a timely and professional manner. Especially your attention to detail and some quick-witted humor as well. Your firm was referred to us by a friend which can always be somewhat awkward but you made us feel at ease through the entire process. I would not hesitate to recommend your firm to anyone if the need arises.”

    (J.B.)

  • “Dear Mr. Powell: I want to thank you for your great service and express my gratitude. I am extremely pleased how everything was handled and I have the highest possible opinion about your professionalism, the quality of your service and your attitude toward me as a client. Thank you again, best regards.”

    (M.K.S.)

  • “I had what I learned was not your stereotypical divorce case. John Powell III was extremely understanding of the situation and worked with myself and my former spouse to navigate the legal pitfalls in our, and our children's case. Everything was resolved amicably and with minimal impact to our family. Without Mr. Powell's assistance I do not know that we would have gotten to such a positive place.”

    (A.W.)

  • “John Powell III is a compassionate and thorough attorney. My case was a complex custody issue that required work in two wide-spread counties. Mr. Powell was able to efficiently overcome this added challenge. He is patient and clear in explaining concepts of the law. Even after the case was closed, Mr. Powell was available to explain the final judgment and to help ensure we were following the Judge's intent. It is very comforting to know that if additional issues arise he is there to act as my advocate.”

    (R.T.)

READ MORE TESTIMONIALS