Going through a divorce often raises many questions, and one of the most stressful can be: What happens to the credit card debt in our names? In Texas, spouses often share financial obligations, including credit card balances accumulated over the course of a marriage. When you decide to end your marriage in San Antonio, figuring out who pays this debt—and how—can feel overwhelming.
Below, we walk you through some of the main issues and rules surrounding joint credit card debt during a divorce, offering tips to help protect your finances and future. If you have concerns about your specific situation, San Antonio divorce lawyer Justin Cook at The Cook Law Firm & Associates PLLC is ready to help.
Why Can Joint Credit Card Debt Be Complicated in a San Antonio Divorce?
Credit card debt can be especially complicated during a divorce because it often has both spouses’ names attached. In Texas, most assets and debts gained during the marriage are considered community property or community debt. That means both spouses have an interest—even if one spouse was the primary user of the card.
On top of that, credit card companies typically do not care about your divorce decree. Even if your final divorce orders say your ex should pay the entire balance, the creditor may still come after you if your name is on the account. That is why it is important to handle these obligations carefully and to follow your local court’s guidelines.
Are There Standing Orders That Restrict Debt During a San Antonio Divorce?
In many counties around San Antonio (including Atascosa, Bandera, and Blanco), courts issue “standing orders” when someone files for divorce. These orders lay out what you cannot do with your finances while the divorce is pending.
Usually, this means you cannot:
- Take on new debts, other than legal fees
- Move or withdraw large sums from bank accounts
- Terminate or reduce credit card limits without court permission
For example, the Tex. Dist. Ct. Atascosa Cty Order (a standing order for Atascosa County) clearly warns spouses not to open new lines of credit or cancel credit cards in the other spouse’s name during the divorce unless the judge has given the green light. Similar rules appear in other counties as well.
Violating these orders can lead to serious legal consequences. So, if you are thinking of making significant changes to your credit cards or finances, check the standing orders in your county or talk to your attorney first.
Who Is Responsible for the Debt During the Divorce in San Antonio?
In Texas, credit card debt that you and your spouse took on during the marriage is usually presumed to be a community obligation. That presumption means both of you share responsibility. The court has recognized that debts incurred during the marriage are presumed to be community obligations unless there is evidence that the creditor agreed to only look at one spouse’s separate property.
But how this debt is handled during the divorce can differ. The judge might order one spouse to make monthly payments while the case is pending, or you might come to a private agreement to split the bills.
Remember, the court aims to protect both parties from financial harm. If one spouse is trying to stick the other with a huge credit card debt, the judge can intervene.
What If My Spouse Adds More Charges to the Card?
One major worry for many people is that their ex might max out the card just before or during the divorce. This is where local standing orders come in. Because they ban spouses from adding new debts (except for legal costs), a spouse who runs up big charges might be violating these orders. That can hurt them in court.
If you suspect your spouse is misusing the card, speak with a San Antonio divorce lawyer right away. You might need to request a court hearing or file a motion to keep your spouse from running up more bills. While the divorce is pending, keep a close eye on all accounts, even if you are not the primary cardholder.
How Does the Court Decide Who Pays the Debt?
Texas courts have broad authority to divide marital debt in a way they consider “just and right.” Unlike some states that aim for a strict 50/50 split, a Texas judge can look at factors such as:
- Each spouse’s earning ability
- Future support obligations (like child support)
- Any other property each spouse receives in the divorce
- The circumstances of how and why the debt was incurred
The judge’s focus is on fairness. In Shumate v. Shumate, 310 S.W.3d 149, the court discussed that credit card debts assigned to a spouse in a divorce decree remain debts owed to the credit card companies, not directly enforceable by contempt in favor of the other spouse. Even so, a judge can require one spouse to take on most or all of the debt if that is fair under the circumstances. Or the judge can require the spouses to split the payments in some proportion.
What If I Have to Pay Debt That Is Not Mine?
It is possible that a judge will assign you some or all of the credit card debt, even if you think you did not make most of the purchases. That might feel unfair, but it can happen if the court decides it is still a community debt or sees that you benefited from the spending.
Once the decree is final, if the court says your spouse must pay a certain debt and they later refuse to do so, the creditor can still come after you. Your recourse might be to take your ex back to court for not following the divorce decree. However, the creditor will expect payment from whoever is on the account, no matter what the decree says.
Should You Close or Freeze Joint Credit Cards?
Many people choose to freeze or close joint credit cards to prevent future charges. But you must be careful. Local standing orders typically forbid closing or limiting credit cards in the other person’s name without permission. Breaking these rules could land you in contempt of court.
Instead, your best bet is to talk to your lawyer about how to handle each card. You might want to request a joint agreement or a specific court order allowing you to freeze certain cards, so no new charges appear. That way, you stay on the right side of the law while protecting yourself from extra debt.
Can You Negotiate a Settlement for Joint Debt in San Antonio Divorces?
Absolutely. Many spouses choose to settle credit card debt outside the courtroom. This can be faster and less expensive than a trial. In your settlement agreement, you can specify who pays which debts, how payments will be made, or whether you will use joint assets to pay off balances before dividing other property.
Negotiation or mediation can let you and your spouse be creative. For instance, you might agree to pay off a large card balance with money from the sale of your home. Or you could each take responsibility for certain accounts that align with your spending. Just make sure any settlement you reach is clearly written into the final divorce decree so there is no confusion later.
Are Pre-Marital or Postnuptial Agreements Relevant to How Credit Cards Are Handled?
If you and your spouse signed a premarital or postnuptial agreement that specifically addresses debt, it can significantly shape how your credit cards are handled. Such agreements might say that each spouse’s credit card debts remain their own. Or they may outline how debts will be paid if a divorce occurs.
Courts generally respect valid agreements that are clear and fair when signed. But keep in mind that if the agreement is ambiguous or lacks detail, a judge might fill in the gaps by treating certain debts as community obligations.
What If Your Spouse Files for Bankruptcy During the Divorce?
Sometimes, one spouse might choose to file for bankruptcy to wipe out certain debts. While this can complicate a divorce, the standing orders about not creating new liabilities still apply. If your spouse’s bankruptcy effectively eliminates their obligation to pay a joint credit card, the creditor could come after you for the entire balance.
Bankruptcy also triggers an “automatic stay,” which can pause some aspects of your divorce. Handling a divorce plus a bankruptcy can be complex, so if you suspect this might happen, it is wise to bring it up with your lawyer early in the process.
Need Guidance on Handling Joint Debt? Contact a San Antonio Divorce Lawyer Today
Credit card debt should not derail your efforts to secure a fair divorce outcome. At The Cook Law Firm & Associates PLLC, we understand that dividing finances can be difficult, especially when your name is on the hook for a joint credit card. Let Justin Cook guide you through the legal landscape of standing orders, negotiations, and final settlements.
Call 210-740-0281 or fill out our online contact form to schedule a consultation with a San Antonio divorce lawyer. We will work with you to protect your financial interests and move forward with confidence. When you need skilled, compassionate help in the San Antonio area, look no further. Justin Cook is ready to stand by your side.