Help; question re: marital debt

iVillage Member
Registered: 03-21-2005
Help; question re: marital debt
3
Tue, 04-19-2005 - 5:09pm

Hi. Does anyone know what the rules are as far as marital/credit card debt incurred during the course of a marriage (but before filing) when the credit card is in one spouse's name only? Do you think this varies by state? I live in Indiana. I know someone in IL, and the H is just as responsible (50%) for the credit card debt even though it is soley in his W name and he did not give her permission to make the purchases. Bad news for him, but good for me? We have some credit card debt, of course in my name only, but these purchases were for Christmas presents for family, car repairs and maintenance, eating out, diapers and clothes, gas and cigarettes (H only!), and, yes, even groceries a few times. I have all the statements as most of this debt was accumulated since last summer when my STBX missed some time from work due to an automobile accident. I even have a credit card slip with HIS SIGNATURE on it for the $500 deductible that he paid when he got his car fixed. So I think I have a good chance of proving I did not go on crazy spending sprees. Not only that, but I have a loan in my name only, most of which was taken out to catch us up on bills during the time that he missed work. All of this was to be repaid with his settlement, but unfortunately he hasn't settled and won't until after the divorce so I won't see a dime (I am not named in the suit.) Also, we were to repay to the credit cards with our income tax check which came yesterday but now he is changing his tune and saying he wants half of that check which I think is bull****; if we could get rid of another two bills then we should (I am the same person who is not getting my utilities or other bills paid by him already and I do not have a job yet because he made me quit mine to work on our marriage 2 months ago before he told me he wanted a divorce.) So now the checks will go to the lawyer, in trust, and those balances will accumulate interest. Don't you think the judge will make us use any liquid assets to pay off debt, especially if we cannot pay our bills? If anyone has any knowledge/experience with the credit card thing, I would really appreciate feedback. I am getting really worried that I am stuck paying for his car repairs and cell phone and magazine subscriptions just because I was the one who took care of the finances ( and the house, and the kids....) UGH!!!

Thanks!

iVillage Member
Registered: 03-06-2005
Tue, 04-19-2005 - 5:31pm

A quick hug to you and sorry I can't help you there.... luckily we didn't have plastic in our marriage, THANK GOD.


Hugs to you!


Angelena

iVillage Member
Registered: 02-19-2004
Tue, 04-19-2005 - 8:20pm

There are a lot of steps before a judge would rule on it. One of you will have your attorney propose a settlement on what you think is a fair distribution of marital assets and debts. You negotiate and if you can agree, all a judge will do is review it to be sure it seems fair enough. If you can't agree, then a judge (or a mediator) will get involved and decide. It doesn't matter who's name is on the debts, they are both of your debts if they were incurred in the marriage. Splitting the debts fairly *may* mean that you each take half the debts (and half the assets), but an equally fair alternative is you get more assets and more debts, or you use marital assets to pay the debts before it is distributed. If you propose something that is fair (you use marital assets to pay marital debts), hopefully his attorney will tell him to agree to it. Otherwise it will go to the judge (or mediator) and they will see your offer is fair and agree to it, but when you leave the decision to a third party you never know if it will go your way.

Who has the tax refund? Ask your attorney if you can just cash it and pay debts with it. If not, give the check to your attorney to hold until the dispute is resolved. If you haven't already, go to the Dollars and Sense folder below and read my post about not letting your ex trash your credit, since the credit cards are in your name, that is very important.

Photobucket

iVillage Member
Registered: 04-21-2005
Thu, 04-21-2005 - 10:17am
Sorry to hear you are going through this, I just went through the same thing, all the cards were in my name also. It took me three years to fight everything but he ended up having to pay half of the credit cards. Also, on the lawsuit your husband is going to collect on, this should be applied as a marital asset even though it has not been distributed yet. If the reason for this lawsuit happened during the time you were married and together you should get half. Tell your attorney and fight for it. Don't settle until you get what you want. My ex thought he was going to walk away and not pay any bills or support for me. I got 60% of the assets and he had to pay me support for the three years it took to get my divorce. I told the loser! So fight!