Dividing Credit Cards During A Divorce
In New Jersey, when the courts are dealing with issues regarding any debt, especially credit card debt in a divorce hearing, they have to determine three things. First, the existence of the debt has to be proven. This means that it must be shown that the debt is a legal legitimate debt and it does currently exist. Next, the court has to examine the type of debt it is; is it marital debt or non-marital debt? Once this is determined, then the court will determine the debt allocation and decide which spouse is responsible for it.
Establishing That Debt Exists
One or both parties will be asked to produce credit card statements that show the dates during which the debt was incurred, what was purchased and which spouse purchased it and what the purchase price was.
Marital Or Non-Marital Debt
Marital debts are any debts that were incurred during the duration of the marriage or any debt that are household based, such as credit card bills that were used for groceries, cars, clothing, or medical expenses. New Jersey for the most part, will rule that both spouses are held responsible for credit card debt.
Non-marital debts include any debts incurred before the marriage, such as student loans or single credit card debts. Additionally any debts that exist due to one spouse' misuse of marital monies or credit, such as gifts given during an extra marital affair, trips taken with a paramour, or drug purchases are non-marital debts. In this instance, the spouse who is responsible for the debt has to pay it.
In New Jersey, each spouse is responsible for his or her own college loan, unless the parties were married at the time the loan was taken. If a private loan was taken, though a bank, in order to pay for college expenses, then both parties are responsible for that loan if it was taken during the duration of the marriage.
College loans taken out by parents for children are considered martial debts and both parties are responsible for these debts as well. If college loans are taken for children after the divorce is final, the parent who signs for the loan is responsible for that debt.
Contact Villani & DeLuca, P.C.
If you are in the early stages of a divorce and you have questions or are seeking guidance about how to best handle credit card debt and or college loan debt in relation to your divorce proceedings, contact Villani & DeLuca, P.C. today. Our law offices serve the regions of Monmouth and Ocean County and an experienced attorney can guide you toward the best solution to your divorce related issue.