The longer couples stay married and the more successful they are during the marriage, the greater the chances are of a complex property division process if they divorce. A complex marital estate may contain numerous valuable assets as well as the joint financial obligations of the spouses.
The property division process requires that couples discuss the distribution of their existing debts — not just their assets. Credit cards may be an important consideration during a divorce. There are many ways that credit cards can complicate a divorce, including the three below.
1. Disputes about which credit card debt is included
In some cases, such as when divorce relates to infidelity or to protracted financial misconduct, one spouse may have taken on debts without informing the other. When debt constitutes dissipation or wasting of assets, one spouse may want to exclude an account from the marital estate.
2. Determining how to distribute responsibility
Once couples have agreed on which debts they need to share, they may disagree about how to allocate different accounts. There are many possible solutions, from each spouse taking specific accounts using assets to balance out the value of debts. Spouses might disagree about what solutions are most appropriate.
3. Addressing rewards balances
Many credit cards, especially those with annual membership fees, offer valuable rewards. From cash back to free plane tickets, those rewards can be worth hundreds of dollars, and spouses may disagree about how to address those rewards as part of the marital estate.
Working with a lawyer who has insight into complex property division matters can be helpful for those with credit card balances and other financial complications during divorce. Spouses who know possible sources of conflict in advance can prepare themselves for the upcoming negotiation process more effectively and pursue the best possible property division settlement.