Process to Notify Potential Credit Card Creditors of Divorce

When a couple divorces, they need to separate their finances, including jointly-held credit cards. The process of informing credit card companies of a divorce may require spouses to contact the creditors more than once, particularly if the couple has difficulty settling their finances, one or both parties changes an address multiple times or a spouse changes a last name after the divorce becomes final.

Discovery and Disclosure

The first step in dividing credit card debt and notifying creditors of a debtor's change in marital status is for each spouse to disclose all credit card debt. In most cases, this is done through the process of financial discovery, in which each spouse must turn over financial records to the other spouse's attorney. These financial records may include credit card statements as well as credit reports for each spouse. As the attorneys examine these records, they can compile a list of creditors to be contacted by the divorcing couple.

Contact Creditors

While a divorce is in process, spouses should contact credit card companies and ask them to freeze joint credit card accounts. This will prevent either spouse from adding new charges to the account. As the divorce progresses, the couple should work with their lawyers to determine whether a credit card is to be paid off and closed, or whether one spouse wishes to assume responsibility for the card and ask the credit card company to transfer the account into his name only. While credit card companies are not required by law to convert a joint account into one owned by one spouse, some will do so upon request.

A notification of a divorce and a request to freeze or close accounts should be made in writing and the spouse who makes the request should keep a copy of the request letter and send it via certified mail. (Spouses may want to call the credit card companies first to confirm the appropriate mailing address for making such a request.) After the request is made, both spouses should check their credit reports to make sure that the account status is reported correctly.

Name Change

If a woman reverts to her maiden name after a divorce, she should inform her creditors as soon as possible. In some cases, she may be able to do this over the phone or online. Her creditors may, however, want her to mail them a copy of the court order authorizing the name change. The same rules apply to a man undergoing a name change.

Spouses may move around a bit during and after a divorce. Both should take care to notify creditors of current address and phone number. Again, this is a process that can often be accomplished either online or via the telephone.

Warning

Creditors are not legally obligated to recognize the division of credit card debt in a divorce settlement. If one party defaults on her payments or files for bankruptcy, the creditor may pursue the other spouse for payment, even if the divorce decree specifies that the defaulting spouse is responsible for the debt. If this happens, the spouse pursued for the debt has the option of taking his spouse back to court to recoup any money he had to pay to creditors.