Parting Ways? Split the Credit Card Debt

Sometimes, holy matrimony can feel more like a holy terror. In our modern society, our marriages are just as apt to fall apart as they are to stay intact. Unfortunately, divorcing your joint debt might be harder than divorcing your spouse. There are things you can do, though, to protect your credit rating during a divorce.

Lay the Groundwork

The first thing you should do, say divorce attorneys and accountants, is to differentiate which accounts belong to whom and which accounts are jointly held. You may have a credit card account with two cards, one with each of your names. That doesn’t mean the account is considered “joint”. It could be that one of you simply added your spouse as an authorized user at some point.

Naturally, these accounts will be a bit easier to separate. If it’s your account, you’ll want to call the credit card company and rescind your authorization for any other users you’ve added. Your credit card company can usually make it happen while you’re on the phone with them. This will eliminate any surprise charges on next month’s credit card statement.

Plan Ahead

Since you’ll be flying solo, now’s the time for thorough credit analysis. Do you have credit established in your name? If not, you might want to consider opening a credit card account, even if you generally pay with cash. This will secure your buying power later one when you’re ready to purchase a home or new car. The last thing you want to worry about after a divorce is not being able to cover those big ticket purchases on your own.

Memorialize Agreements

For those joint accounts that you can’t remove yourself from (or your spouse can’t remove himself), it’s important to have the responsibilities spelled out in writing. That said, no divorce decree will override a contract with a credit card company or bank. Still, having the legalities in place will give you an advantage if the account goes into default. In the meantime, you’ll want to closely monitor those accounts you’re still responsible for.

Nothing is worse than feeling helpless when it comes to your credit rating and if a spouse is on a major shopping spree, the sooner you know, the less damage he or she can cause. For that matter, few divorces come as a surprise to people. If the marriage is in trouble and it looks as though a reconciliation isn’t in the works, now’s the time to start getting your financial ducks in a row. It will only help both of you in the long run.

If you are starting over and are looking for the right credit card that will help you establish your own credit, sans the ex, here are a few worth considering.

Chase Freedom Visa

Nothing’s better to start a new chapter in your life than cash back. The Chase Freedom offers new card users a $200 bonus once you spend $500 in the first three months. Not only that, but you’ll earn cash back in any number of ways, including bonus categories, which earn 5% and unlimited 1% cash back on all your other purchases. The last thing you need after a divorce is an annual fee – and this credit card doesn’t have one.

Discover More Card

If you’re looking for a solution for your joint credit card accounts, transferring the balance to another card works for many divorcing couples. You’ll want a balance transfer card, preferably one that offers a 0% intro APR on purchases and your balance transfers. The Discover More card offers it – and even better, it offers it for up to 18 months. It’s an ideal solution that just might save money in the long run. Like the Chase Freedom, this credit card also has bonus categories that allow yo to earn up to 5% cash back. There’s no annual fee and you’ll enjoy $0 fraud liability in case your identity or card is stolen.

Divorce is never easy, but getting the financial aspects taken care of is definitely a burden lifted. A bit of planning and teamwork will keep a tough time in your life a bit more manageable.

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