I’m not sure if this qualifies as a request for legal advice, so I don’t know where to place the thread. Feel free to move it if I’m wrong.
What’s the conventional wisdom if one person in a marriage runs up a lot of credit card debt, and then a divorce is sought? Will a divorce court assume that both spouses are responsible for this debt even if one of the spouses was unaware of its existence?
Typically in a community property state, both spouses have joint liability for the credit card debt. So any debt incurred up until the legal separation or divorce is filed is both of your responsibility. What this means that even if you agree to split it down the middle, if your spouse decides to not pay their share, then the credit card company can come after you for the entire debt.
Your best bet would be to call and cancel the card before any more debt gets racked up.
What OL said - debt is usually joint. Another common tactic is for the financially junior party who thinks they might not get a fair share of cash and assets to go out and max the credit cards buying stuff they “need” and want… and thereby forcing those purchases to be part of the settlement.
Folks, the minute a spouse says anything like “I’m done!”… call and suspend the credit cards as lost and ask them to hold off on sending new ones. The other party won’t be able to untangle that easily, but it can be reversed with a day or two’s calls and waiting.
Many providers also have a “suspend agreement” option where one signer or the other can void the agreement for both (not suspending payments and existing charges, of course, but barring further purchases).
Can a married person in a community property state receive an inheritance and hold it as separate and apart from the marital estate?
If so, can such a person obtain credit as a separate and distinct entity?
And, if one party enters a marriage with a debt, does the spouse assume half that pre-existing debt? I am reasonably certain that it remains the sole obligation of the debtor.
It varies a bit from state to state but the answers are roughly yes (if they’re careful), no (with exceptions) and no (with exceptions).
I am a married person in a community property state. When my dad died, my sister and I were the sole heirs and we maintained the inheritance (it wasn’t much) in a joint bank account, no spouses involved. I have also obtained credit in my own name.
My experience in my California divorce was all credit card debt was mine, because the card was in my name only. No joint accounts, no community debt.