Typically, when a couple gets divorced, asset division is top of mind. Both spouses have likely worked hard for what they own, and they’re often very concerned about “who gets what” in the divorce. That said, what many couples don’t think about is how debts are divided, namely, credit card debt. Continue reading and reach out to the dedicated Providence property division lawyers here at Caprio Law to learn more about how credit card debt is divided in a Rhode Island divorce. Here are some of the questions you may have:

What Factors Determine Who is Responsible for Credit Card Debt in a Rhode Island Divorce?

In Rhode Island, courts follow what is known as equitable distribution, which essentially means that debts are divided in a way that is considered fair under the circumstances, though not necessarily equal. Because of this, there are several important considerations that will typically come into play when determining how credit card debt is allocated:

  • The timing of when the debt was incurred, including whether it was accumulated during the marriage or after separation
  • The reason behind the charges, such as whether they were used for everyday household expenses or for more personal purchases
  • Which spouse actually benefited from the spending, even if both names are not on the account
  • Each spouse’s overall financial situation, including income, assets, and earning ability
  • Whether there is any indication that one spouse engaged in excessive or irresponsible spending

Does It Matter Whose Name Is on the Credit Card?

Many people assume that if a credit card is only in one spouse’s name, that person will automatically be responsible for the debt. However, in a divorce, the name on the account is not always the deciding factor. Generally, debt accumulated during the marriage is considered marital debt, regardless of whose name appears on the credit card, especially when the debt was incurred for household expenses, family needs, or the benefit of the marriage. In many situations:

Joint credit card accounts are typically treated as shared marital debt, regardless of who made the purchases
Individually held accounts may still be considered marital debt if the charges were incurred during the marriage, particularly if they were used to support the household or family expenses
Certain debts may remain with one spouse if they were clearly incurred for that individual’s personal benefit

It is also important to understand that even if a divorce agreement assigns responsibility for a credit card to one spouse, creditors are not bound by that agreement, which means they may still pursue either party if the account was originally shared.

What Happens If One Spouse Misused Credit Cards?

There are also cases where one spouse may have taken on significant credit card debt without the other’s knowledge or may have used joint accounts in a way that raises concerns, particularly leading up to a divorce. In these situations, courts will examine the following:

  • Large or unusual purchases made shortly before the divorce was filed
  • Spending that does not appear to benefit the marriage or household
  • Any efforts to hide or conceal debt from the other spouse
  • A broader pattern of financial behavior over time

If it is determined that one spouse engaged in wasteful or deceptive spending, the court may assign a greater portion, or even all, of that specific debt to that individual.

If you have additional questions about how debt is divided in a divorce or would like to speak with a knowledgeable attorney about your case, please don’t hesitate to contact Caprio Law today.