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How to Limit Liability on Non-Joint Credit Card Debt

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  • 01-05-2009, 01:11 PM
    BoGus
    How to Limit Liability on Non-Joint Credit Card Debt
    My question involves divorce in the State of: Florida

    Hello,

    Goal: To prevent my wife's debt from having an effect on my plans for my family's financial future.

    Questions:
    1. Not being a signer on a credit card, yet legally, through marriage be, tied to the debt on that card, what rights or means do I have to prevent further debt?

    2. If a divorce were to occur, can non-essential, common purchases be sumarially dismissed from any judgement against me if I can prove that I have made repeated attempts to correct/curb my wife's purchasing habits while at the same time I exhibit my own financial planning? Would it simply be a matter of going through the receipts and saying, "Here you bought this [explicative], you can take it with you along with your debt."?

    3. Is there such a concept as a financial divorce or would a post-nuptial defining financial obligations be the route to [try to] take? I highly doubt this would be successful since it would require my wifes cooperation to be responsible for her own debt.

    4. While I don't like to use bankruptcy as a way out since I feel people should be responsible for their actions, should I encourage my wife to file such as a means reduce "MY" obligation and then seek a post-nuptial or divorce?

    Events:
    I am trying to avoid the use of divorce as a means to limit financial liability with regard to my wife's credit card use. My wife eventually charged over $30K in cards before I caught her in an affair. (Note: My wife paid her bills and I paid mine. I maintained my own accounts for personal & business purposes but I also had access to her account so I could transfer monies to cover her bills when needed.) After working things out, we took a 2nd mortgague and closed what accounts we could. I focused on those accounts that had the highest interest rate first and then those with my name (unwillingly) included on them. (I've used a debit card since marriage for all my purchases.) For the balance of debt on cards with my name attached, I paid $7k to close those accounts.

    So, currently, my wife has no credit cards that have my name on them but she has, again, charged over $12k. My constantly having to cover her debt has hindered my ability to safe for our retirement and is making it more difficult to keep up with my children's college fund (Florida 529 plan).
  • 01-08-2009, 05:22 PM
    Mr. Knowitall
    Re: How to Limit Liability on Non-Joint Credit Card Debt
    Your wife's separate debt is her responsibility, but a divorce court can consider her debt and how the debt was incurred when devising an equitable distribution of the marital estate.

    If you wish to try to enter into some sort of post-nuptial agreement in relation to marital (and separate) assets and debts, I would urge you to do so with the help of a lawyer - and for your wife to have her own, independent attorney advising her.
  • 01-21-2009, 08:57 AM
    BoGus
    Re: How to Limit Liability on Non-Joint Credit Card Debt
    Mr. KnowItAll,

    Thank you for your previous post.

    Do courts typically make a distinction between necessary items and unnecessary items when determining who pays the debt for community property?

    For example, my wife will spend $5 each on several posters of a current "pop-star" knowing that she is just getting herself deeper into debt. Yes, these items are for one of my daughters so I would assume "community" property. But, they aren't necessary to the family so I wouldn't want to be forced to pay for them.

    Thank you for your time.
  • 01-22-2009, 09:42 PM
    Mr. Knowitall
    Re: How to Limit Liability on Non-Joint Credit Card Debt
    If you want to waste the court's time arguing over who should pay for a $5 poster, have at it. If you both have lawyers, it shouldn't cost you more than a few hundred dollars per poster.
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