Credit card debt and divorce, how to minimize damage

The credit card debt and divorce are the top two producers stress that when combined can lead to waves and waves of anger, stress and anxiety. What is the best course of action to be extremely difficult at this time? Here are a few guidelines to follow.

Normally, during the negotiations, part of the responsibility for the debt is assigned to each spouse. However, you must ensure that you are responsible for their part only. You do not want to get caught having to pay their share of the spouse if he or she can not do their part.

Credit card companies do not care how the joint credit has been divided in a divorce. They want to be paid. If a spouse or other defect in any joint debt, creditors are going after the other.

The first thing to do about divorce and credit card debt is to pull the credit of both parties to ensure that a clear picture of your credit history is known. You do not want to know about any surprises hidden debt that you can find whole or in part on the hook for later.

Once a clear picture you get no credit joint credit must be canceled and became the individual debt. Each spouse should have its own individual portion of the debt to be responsible. Make sure your spouse's name is not in any of your accounts and vice versa. Too often the man in a particularly difficult divorce, one or the other parties may be hampered by the credit card out of spite. This is another good reason to close joint accounts immediately.

Also, a good idea is to add an indemnification clause of some sort to protect both parties in case one or the other can not afford. This clause should include protection against having to pay attorney fees and court costs.

Finally, after the divorce is final, you and your spouse may want to consider taking out a consolidation loan to pay off some debt each of you has. This would be a good way to reduce the rate of interest on the debt and establish a credit history if either party needs.

Divorce is stressful enough by itself. Mix the potent brew of credit card debt and divorce, without careful planning and you have a great recipe for disaster for one or both spouses.