Portrait of John K Grubb

Texas Divorce and Prenuptial Agreement

4550 Post Oak Place, Suite 201 • Houston, Texas 77027-3139

Phone: 713-877-8800 • Fax: 713-877-1229

Credit Card Debt and Rewards Often Problematic in Divorces

Credit cards are frequently a big problem area for couples set to divorce. Joint credit cards, credit cards acquired prior to marriage and credit card rewards are several of the areas that couples argue over when it comes to settling their finances and moving on.

It might sound strange, but divorce decrees do not trump credit card and other financial agreements. This means that if you and your spouse opened up a joint credit card account, you both agreed to be responsible for the debt that is on that account. Providing the credit card company with your divorce decree stating that your spouse is now responsible for it does not work. Spouses need to work closely with their attorneys to transfer this joint debt in accordance with their wishes. If you fail to do so, and say your ex-spouse later declares bankruptcy, creditors from joint accounts will look to you to pay the debt.

Splitting credit card rewards points is another area that couples frequently battle over in the course of divorce proceedings. They are no small matter either, given that the rewards may earn thousands of dollars in cash or free international flights. Rewards make for a tricky area because couples frequently earn them together, through joint usage of a credit card account.

A prenuptial agreement is one way couples can handle rewards and the management of their finances (including debt) in the event that they later divorce. Couples already married may employ postnuptial agreements. Without forethought and guidance, seemingly basic things like credit card rewards may become a major sticking point in your attempts to move forward.

John K. Grubb & Associates, P.C. – Houston divorce lawyers

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