Divorce often brings both emotional and financial challenges, and credit card debt can leave one spouse unfairly burdened if not properly addressed. For individuals in Kansas City, understanding how debt is divided under Kansas and Missouri laws can prevent future financial strain.
How Credit Card Debt Is Treated in Divorce
When couples divorce in Kansas City, all assets and debts are divided. Both Kansas and Missouri follow the principle of equitable distribution, meaning the division of credit card debt is based on what the court deems fair—not necessarily equal. This approach considers various factors, and each factor could vary on state laws:
Kansas Laws on Credit Card Debt Division
Kansas law treats credit card debt accrued during the marriage as marital debt. This means the court will divide the debt between spouses, taking into account:
- Whose name is on the credit card account.
- Whether the debt was used for marital purposes, like household expenses, or personal purchases.
- Each spouse’s financial situation after the divorce.
If the debt was accrued before the marriage, it is typically considered separate debt, meaning the spouse who incurred it will remain solely responsible.
Missouri Laws on Credit Card Debt Division
Missouri also follows equitable distribution but may approach the division of credit card debt differently. Courts in Missouri examine factors such as:
- Each spouse’s income and ability to repay the debt.
- The purpose of the credit card charges (marital vs. non-marital).
- Any agreements between spouses about managing debt.
If the debt was accrued before the marriage, it is typically considered separate debt, meaning the spouse who incurred it will remain solely responsible
Protecting Yourself From Your Spouse’s Credit Card Debt
Taking proactive steps is the best way to avoid financial responsibility for your spouse’s credit card debt during a divorce. Here’s how to safeguard your finances:
Check Your Credit Report
Start by reviewing your credit report to identify all debts linked to your name. This helps you understand your financial liabilities and spot any inaccuracies or unauthorized accounts. Use resources like AnnualCreditReport.com for a free report and keep records of disputes or corrections.
Close Joint Credit Card Accounts
Prevent new charges by closing joint accounts immediately. Notify the credit card company in writing, and if possible, pay off or transfer balances before closure to protect your credit score. Document the process to avoid future disputes.
Negotiate Debt Responsibility in the Divorce Decree
Work with your attorney to ensure the divorce agreement clearly defines who is responsible for each debt. Include specific terms like payment deadlines or account refinancing where applicable.
Monitor Post-Divorce Accounts
Even after the divorce is finalized, keep an eye on any accounts tied to your name. Regularly check your credit report and notify creditors of unauthorized activity. Freezing your credit can also prevent new accounts from being opened in your name.
Steps to Take If You’re Already Divorced
If credit card debt issues arise after your divorce in Kansas City, consider these actions to address them and protect your finances:
- File a Motion for Contempt: Enforce the divorce decree if your ex-spouse fails to pay their assigned debts. Gather evidence, like creditor notices, and work with an attorney to take legal action.
- Modify the Divorce Decree: Request a court-approved modification if circumstances have changed, such as your ex-spouse’s inability to pay. Consult your attorney to determine eligibility under Kansas or Missouri law.
- Communicate With Creditors: Contact creditors to explain your situation, as they aren’t bound by divorce decrees. Negotiate payment terms, such as restructuring debt or partial settlements.
- Consider Debt Consolidation: Simplify repayment and protect your credit by consolidating or refinancing unresolved joint debts under your name.
Taking these steps can help you manage credit card debt challenges effectively. At Kansas Legal Group, we provide the support and expertise you need to safeguard your financial future.
How Kansas Legal Group Can Help
At Kansas Legal Group, we understand the financial complexities of divorce, especially when credit card debt is involved. Whether you’re dealing with Kansas or Missouri laws, our experienced attorneys will work tirelessly to protect your interests. From negotiating fair debt division to enforcing divorce agreements, we’ll guide you through every step of the process.
If you’re in Kansas City and need assistance, contact us today for a consultation. We’re here to help you move forward with confidence.