Divorce is tumultuous. Finances become a maze. There are discussions and meetings and papers and arguments—all leading to upheaval. During this time, you may find yourself reaching for the normal, like using your spouse’s credit card to make a purchase. Maybe you even forget that their card is the default payment method. That raises the question of whether you can keep using your spouse’s credit card during the divorce. While it might seem convenient to maintain access to a joint or spousal credit card, doing so can lead to significant legal and financial consequences. Here’s what you need to know.
Key Takeaways
- Charges made on a joint credit card during divorce are considered joint debt, making both spouses responsible for repayment.
- Using a credit card solely in your spouse’s name can lead to legal complications, including financial misconduct, especially if done without their consent.
- Any charges made on your spouse’s credit card will add to the marital debt, potentially complicating asset and debt division during the divorce settlement.
- Unauthorized use of a spouse’s credit card can result in accusations of financial misconduct or fraud, leading to a more complex divorce process and possible damage to your reputation during court proceedings.
Joint vs. Individual Credit Card Use During Divorce
| Aspect | Joint Credit Card | Spouse’s Individual Credit Card |
|---|---|---|
| Liability for Debt | Shared liability – both spouses are responsible | Liability typically falls on the cardholder |
| Legal Permission to Use | Yes, as both spouses are co-owners | No, unless explicit permission is given |
| Debt in Divorce Settlement | Included in marital debt | Not automatically included unless contested |
| Impact on Credit Scores | Affects both spouses if payments are missed | Affects the cardholder but can lead to disputes |
| Legal Risks | Low if used with knowledge of both parties | High if used without permission – can lead to claims of financial misconduct |
| Recommendation | Use responsibly and inform the other party | Avoid use without clear authorization |
Understanding Joint Credit Accounts
Whether you can use your spouse’s credit card depends on the status of the account. If you have a joint credit account with your spouse, both parties are generally responsible for the debts incurred. This means that any charges made on a joint credit card during the divorce will likely be considered joint debt, and both parties will be held accountable. However, using your spouse’s individual credit card is a different situation.
Using Your Spouse’s Individual Credit Card During Divorce
If the credit card is solely in your spouse’s name, using it during the divorce can create complications. Legally, your spouse has the right to revoke access to the card at any time. Additionally, continued use may be viewed as financial misconduct, especially if you are incurring charges that your spouse is unaware of or has not agreed to. This could also affect the division of assets and debts during the divorce settlement.
Responsibilities and Consequences
Using a spouse’s credit card when you are planning on divorcing (or going through the process) will have serious repercussions that you must carefully consider:
Increased Debt
Any charges made on your spouse’s credit card during the divorce will add to the overall financial burden that both parties will need to address. This debt becomes part of the marital estate and will typically be subject to division during the divorce proceedings. As a result, this can complicate negotiations regarding asset distribution and debt responsibilities. For instance, if one spouse has significantly increased the credit card debt during the divorce, it could lead to disputes over who is responsible for repayment, affecting the fairness of the overall settlement.
Credit Score Impact
Continuing to use your spouse’s credit card can also negatively impact both your credit scores. If you accrue charges on the card and your spouse fails to make timely payments, it could lead to missed payments being reported to credit bureaus. This negative information can lower your credit score, which in turn can affect your ability to secure loans, obtain a mortgage, or even rent a new home after the divorce. A damaged credit score may also result in higher interest rates on future loans, making financial recovery after the divorce more challenging.
Legal Ramifications
Using your spouse’s credit card without their knowledge or consent can lead to serious legal ramifications. If your spouse can prove that you incurred charges without their approval, they may seek legal recourse for financial misconduct. This could involve claims of financial abuse or fraud, which could further complicate the divorce proceedings. Such allegations can not only affect the division of assets and debts but can also lead to emotional strain, heightened tensions, and a prolonged legal process. Moreover, these claims could impact the court’s view of your credibility and character, potentially influencing the final divorce settlement.
Cyrus vs. Hodges: A Real Life Example
In 2024, the famous country singer Billy Ray Cyrus filed for divorce from Johanna Rose “Firerose” Hodges after seven months of marriage. Cyrus filed for an annulment with claims of fraud, while Hodges stated that Cyrus was emotionally abusive. During the divorce process, a problem with money arose—one that was created by Hodges using Cyrus’ personal business credit card to pay for certain expenses.
The argument developed when Hodges claimed that use of Cyrus’ personal cards was normal and had not been considered wrong during their time together. Cyrus said that her use was unauthorized. The matter went to court, and the judge ordered that Hodges stop using his credit cards for herself. In other words, her access to Cyrus’ accounts was frozen, and she could no longer access information or request any changes.
Now, this does not mean that Cyrus no longer has any financial obligations to his ex-spouse. Although she is not legally able to use his credit cards to pay for expenses further, the use of his card was considered status quo during their marriage. So while Cyrus was able to cut her off from using the cards, the judge also ruled that their individual assets and liabilities needed to be assessed and that they engage in mediation over their financial issues.
The main question is whether Hodges will be awarded a form of alimony, being that she allegedly needed regular access to Cyrus’ credit cards to maintain her lifestyle. The better understand how a similar situation may impact you, contact a New Jersey divorce lawyer, like those at Ziegler Law Group, LLC.
What Happens to Credit Cards When You Decide on Divorce?
What Happens to Credit Cards When You Decide on Divorce?
As mentioned previously, joint credit cards can still be used during a divorce. You both have the account. However, if your credit is solely in your name, it is best to protect your accounts. If you suspect that your ex is using the card, you can declare the card off-limits or freeze it to stop any wayward spending. You can also cancel the card and request a new one with a different number. This can protect your card from being misused.
That said, as seen with the case of Cyrus vs. Hodges, credit card use that was status quo during your marriage will be investigated. If one spouse needed the personal card of their partner to maintain a lifestyle, then those expenses will be considered. In such circumstances, it is not unusual for discussions about alimony to occur.
Contact a Divorce Lawyer in New Jersey Today
Using your spouse’s credit card during a divorce can have significant financial, legal, and personal consequences. Whether it involves joint accounts or individual credit cards, continued use without proper consideration can increase debt, negatively impact credit scores, and even lead to legal ramifications such as claims of financial misconduct. Understanding the implications of these decisions is critical in navigating the complexities of divorce.
At Ziegler Law Group, LLC, we understand the financial and emotional challenges that come with divorce, including how shared assets and liabilities should be handled. If you are going through a divorce and are unsure of your financial rights or responsibilities, it’s important to seek legal guidance. Contact us today for a consultation, and let our experienced attorneys help you protect your interests and navigate this difficult process with confidence.
FAQ Section
1. Can I use my spouse’s credit card during a divorce?
Generally, it’s best to avoid using your spouse’s credit card during a divorce, especially if it is solely in their name. Using their card without permission can lead to legal repercussions, including accusations of financial misconduct or even fraud.
2. What happens if I use a joint credit card during the divorce?
Charges made on a joint credit card are typically considered joint debt, meaning both spouses are responsible for repayment. Any debts incurred on joint accounts during the divorce will be factored into the division of assets and liabilities.
3. Can using my spouse’s credit card impact my divorce settlement?
Yes, unauthorized use of your spouse’s card can complicate the divorce process. Accusations of financial misconduct could influence how the court views your case, potentially affecting asset and debt division, alimony decisions, and the overall settlement.
4. What are the legal consequences of using a spouse’s credit card without permission?
Unauthorized use of a spouse’s credit card can lead to claims of financial misconduct or fraud. This could impact your divorce proceedings by damaging your credibility and possibly leading to financial penalties or other adverse rulings.
5. How can I protect my finances during a divorce?
To protect your finances, consider separating your credit accounts, freezing joint accounts, or consulting a divorce attorney. An attorney can help you navigate the process and avoid actions that may have legal or financial repercussions.
