Credit Card Debt When Divorcing in New Jersey

When a couple gets divorced in New Jersey, the court has to allow for property division of all assets and debts owned by either spouse. No two divorces are identical, and how the court divides these debts depends on each case. Talk to a New Jersey divorce attorney if you need legal advice about dividing credit card debts in a divorce.

Court Distribution

When a New Jersey court is asked to divide property between spouses in a divorce, it takes numerous factors into consideration, while aiming to divide all property equitably. This means the court will divide all property in a manner it believes is fair, which is not necessarily 50-50. The court takes into consideration factors such as how old each spouse is, how long the couple was married, the ability of each spouse to earn an income and the contribution the spouses made to the marriage.

Credit Card Accounts

While a court can order all debts and assets split between the spouses, the court cannot order a credit card company to only seek repayment of debts from one spouse or the other. For example, if you have opened a joint credit card with your spouse, the credit card company can seek repayment from either of you regardless of what the court orders. Many divorcing couples cancel joint accounts as part of the divorce process, even before coming to a settlement agreement.

Party Settlements

While the court can order property settlements under the terms outlined in the New Jersey statutes, the court can also allow the couple to come to an agreement between themselves. The courts not only allow this, but they encourage it. This encouragement results in 98 percent of New Jersey divorces resulting in a settlement between the spouses before the case goes to trial, according to the New Jersey Law Network website.

Prenuptial Agreements

New Jersey couples can also enter into prenuptial agreements that address the issue of credit card debt. New Jersey requires that all prenuptial agreements be made voluntarily between the couple, that each partner had a chance to review the agreement with an attorney and that the both parties reveal all assets and debts they have at the time of entering the agreement, according to the website of the Salvaggio Law Group, a New Jersey law firm.