Often with a divorce the parties have marital debt that is part of credit cards that are in each other's name solely or on joint credit cards. Credit card debt is often paid off with the sale of a marital residence. Alternatively, the parties can pay back the cards in a variety of ways. One way is to split up the credit cards, so certain parties are responsible for certain cards and for paying them back. Another is to close the cards and have them paid back by a party or both parties but to be certain no more future charges are being put on the cards they are closed. The parties, if possible, should agree that the cards will be paid off in a certain period of time if in both names. If the cards are in one parties' name, so long as they are responsible for the debt, they can pay it off as they choose. Often credit cards can be negotiated down with credit card companies so that settlements may be paid off for a percentage of the full amount.
Dec 14, 2015 @ 12:49 PM — by Michael Green