What Should You Do With Joint Credit Cards Before Divorce?
Joint credit cards can cause real financial trouble when a marriage ends. A card that once covered groceries, vacations, school costs, and bills can quickly become a source of conflict if one spouse keeps using it while the other wants it closed. If both spouses are responsible for the account, missed payments or rising balances can hurt both of them.
Things get even trickier because a divorce court’s decision about who should pay a debt does not always change what the credit-card company can do. Before making changes to a joint account, I suggest learning how Illinois divorce law handles marital debts and talking with a family law attorney about the best timing for any action.
Determine Whether The Account Is Truly Joint
The first step is to find out if you are a joint account holder or just an authorized user. This difference matters. The Consumer Financial Protection Bureau says that if two people are joint credit-card holders, each can be responsible for the whole balance. An authorized user usually does not have the same legal responsibility for the debt.
Check your credit-card statements, credit reports, and the original account agreement. Do not assume that having a card with your name on it means you are a joint borrower.
If you are an authorized user on your spouse’s account, it is usually easy to be removed. If you are both joint account holders, closing or separating the account often means working directly with the credit-card company.
Understand How Illinois Treats Credit-Card Debt During Divorce
Illinois law treats debts and other financial obligations acquired during marriage as part of the marital estate unless an applicable exception makes them non-marital. Section 503 of the Illinois Marriage and Dissolution of Marriage Act, 750 ILCS 5/503, specifically addresses the disposition of both property and debts.
This means that a credit card being in only one spouse’s name does not necessarily answer the question of who will ultimately be responsible for the balance between the spouses.
I consider when the charges happened, what the money was used for, if the expense helped the family, and whether the debt was related to the marriage. Routine household expenses are treated differently from large amounts spent after the marriage started to break down, especially if only one spouse benefited.
Illinois does not require marital property and debts to be divided exactly 50-50. Section 503 directs courts to divide the marital estate in “just proportions” after considering statutory factors, including each spouse’s economic circumstances, income, liabilities, needs, contributions to the marital estate, and any dissipation of marital property.
Consider Freezing New Charges Before Closing An Account
One of the biggest risks during the period immediately before or after filing for divorce is continued spending.
If both spouses remain legally responsible for a joint account, charges made by one spouse can create liability for the other spouse as far as the card issuer is concerned. The CFPB states that each joint account holder can be responsible for the full balance and that a consumer concerned about future liability should contact the issuer regarding available options, which may include closing the account.
Depending on your situation, I might suggest calling the credit-card company to see if new charges can be stopped, if one spouse can be removed, or if the joint account needs to be closed.
Do not assume you can remove your spouse from a joint account on your own. The credit-card company’s rules and procedures decide what is allowed.
It is also important to consider whether the account is being used for necessary household expenses. Abruptly cutting off every source of credit without addressing groceries, utilities, children’s expenses, medical costs, or other necessities can create additional conflict and may become an issue during the divorce proceeding.
Do Not Run Up The Cards Because Divorce Is Coming
A pending divorce is not an invitation to spend down the available credit limit.
Illinois courts can consider dissipation when dividing the marital estate under 750 ILCS 5/503(d). Dissipation generally concerns the use of marital property for a purpose unrelated to the marriage during a period when the marriage is undergoing an irretrievable breakdown. Illinois law also establishes specific procedural requirements and time limits for formally asserting a dissipation claim.
For example, if one spouse suddenly begins charging expensive vacations, gifts for another person, entertainment, or substantial personal purchases after the marriage has broken down, I would closely examine those transactions.
A finding of dissipation can affect the ultimate property division because the court may account for marital assets improperly spent by one spouse.
The same issue can arise when one spouse uses cash advances or convenience checks from a credit card to remove money from the marital estate.
Download Statements And Preserve Financial Records
Before access to an account changes, obtain copies of the records. I generally want to know the balance at important points in time, including before separation, around the date the divorce case is filed, and during the proceedings. Statements can help establish who made particular purchases, whether balances increased sharply, and whether charges were made for family purposes.
Preserve:
- Monthly credit-card statements.
- Recent transaction histories.
- Account numbers and creditor contact information.
- Records showing payments from marital bank accounts.
- Receipts for large or disputed purchases.
- Cash-advance records.
- Balance-transfer information.
- Documents showing whether you are a joint borrower or authorized user.
These records can become important when marital debts are allocated under 750 ILCS 5/503.
Remember That The Credit-Card Company Is Not Bound By Your Divorce Agreement
This is one of the most important points I explain to clients. Suppose a divorce judgment states that your spouse must pay a particular joint credit card. Between you and your former spouse, that obligation may be enforceable under the divorce judgment. But the creditor was not a party to your divorce case.
A divorce judgment generally does not eliminate your contractual liability to a creditor when your name remains on the debt. The CFPB confirms that a creditor may still pursue someone whose name remains on the loan or debt agreement even when a divorce decree assigns payment responsibility to the other spouse.
This is why I prefer, when circumstances allow, to address joint debts in a way that reduces continuing financial ties between former spouses. Depending on the case, that might involve paying an account from marital assets, refinancing another obligation, transferring balances to separately held accounts, or closing joint accounts after an agreed payoff arrangement.
Be Careful About Your Credit Score
Joint credit accounts can affect both spouses’ credit histories. The CFPB confirms that a joint credit-card account can affect the credit scores of both account holders. If your spouse stops making payments on an account for which you remain legally liable, your credit may suffer even if your divorce agreement says your spouse was supposed to make the payments.
For that reason, I recommend continuing to monitor accounts until joint obligations have actually been resolved. Do not assume that a signed marital settlement agreement automatically protects your credit report.
Closing a credit card can also affect credit utilization and other credit factors, so the financial consequences should be considered along with the legal ones.
A Court Can Restrict Certain Financial Conduct During The Divorce
Sometimes cooperation is not possible. Under 750 ILCS 5/501, an Illinois court may issue temporary relief, including orders restraining a person from transferring, concealing, encumbering, or disposing of property outside ordinary business activities or necessities of life when the statutory requirements are met.
If one spouse is rapidly accumulating debt, draining accounts, or using marital assets in a way that threatens the financial estate, I can ask the court to address the problem rather than relying on informal promises.
Temporary court orders can be particularly important in high-conflict divorces where significant assets, business interests, large credit lines, or repeated financial misconduct are involved.
Frequently Asked Questions About Joint Credit Cards And Illinois Divorce
Should I Close A Joint Credit Card Before Filing For Divorce?
Possibly, but I would not automatically close every account without first considering how the account is being used and who depends on it. If it pays necessary household or children’s expenses, abruptly closing it can create practical problems. I first determine the current balance, whether both spouses are joint borrowers, what recurring charges are attached to the account, and whether another method of paying necessary expenses is available. When there is a risk that a spouse will substantially increase the balance, limiting or eliminating future charging authority may be appropriate.
Am I Responsible If My Spouse Runs Up A Joint Credit Card?
You may be responsible to the credit-card issuer if you are a joint account holder. The CFPB states that each joint cardholder can be responsible for the entire balance, even when one person made the charges. Between spouses, however, the Illinois divorce court can determine how the debt should ultimately be allocated under 750 ILCS 5/503. If your spouse accumulated substantial debt for purposes unrelated to the marriage after the marriage began breaking down, I would also examine whether a dissipation claim may be appropriate.
Can My Spouse Be Forced To Pay A Joint Credit Card In The Divorce?
Yes. A marital settlement agreement or court judgment can allocate responsibility for a particular debt to one spouse. That decision governs the obligations between the spouses. However, it does not necessarily prevent the credit-card company from collecting against you if you remain contractually liable on the account. For that reason, simply writing “Husband pays Visa” or “Wife pays Mastercard” into a divorce judgment may not completely eliminate financial risk. I look for practical ways to separate the obligation whenever possible.
Speak With A Schaumburg Family Law Lawyer About Joint Debt Before Divorce
Joint credit cards can continue tying spouses together financially long after they decide to end their marriage. I help clients identify marital debts, review disputed spending, address potential dissipation, seek temporary financial protections when necessary, and structure divorce agreements designed to reduce future financial conflict.
At the Law Office of Fedor Kozlov, I represent clients on either side of Illinois family law matters involving divorce, marital property and debt, parenting time, allocation of parental responsibilities, paternity, and related disputes.
If you are considering divorce and are concerned about joint credit cards or other marital debts, contact our Schaumburg divorce attorney at the Law Office of Fedor Kozlov by calling (847) 241-1299 to receive a consultation.
