A common question is, “am I liable for debt my spouse incurred without my knowledge?” Sometimes, the answer may be “yes.”
Most states use common law rules when needing to determine credit card liability in a divorce proceeding. In Oklahoma, you are only liable for credit card debt if the credit card is in your name. Typically, if a credit card is only in your partner’s name, you are not liable for their debt.
However, there are exceptions. In some cases if you and your spouse own an asset jointly, it is possible for a creditor to come after that asset to relieve the debt. In addition, if you are a co-signer on your spouse’s card, even if your name is not on the card, you are still liable.
Am I Liable For Debt My Spouse Incurred During Marriage?
As discussed above, there are certain instances where you may be liable for your spouse’s debts. For any debt incurred during marriage, you and your spouse are equally liable.
It is difficult to prove that a debt incurred during marriage is the sole responsibility of one spouse. Tulsa family divorce attorneys know how to protect their client during a divorce and make sure there are not unnecessary debts laid on them.
How Does The Divorce Decree Handle Debt My Spouse Incurred Without My Knowledge?
Even if you were not previously liable for a credit card in your spouse’s name, a family court judge may still assign the debt to you in the divorce decree.
Part of the assignment of assets also includes the division of debt. It is possible, under equitable distribution in Oklahoma divorce laws, that it would be fair to assign debt to one spouse — even if it’s not in their name.
Contracts
In Oklahoma, there is an exception to the divorce decree dictating the division of debt. If your spouse signed a contract for a debt you were unaware of and the debt did not technically benefit the marriage, then they are responsible for that debt.
Remember, the divorce decree lays out who is supposed to pay the debt, not necessarily who is legally obligated to the debt. Your Tulsa divorce attorney can explain this in fuller detail.
Similar to a divorce decree, an Oklahoma marital settlement agreement simply indicates who will pay a debt; it does not determine who is legally liable.
It is important that you are represented during a divorce, especially if you are contesting debt that is clearly not your responsibility to repay. A qualified Tulsa divorce attorney can help.
Joint Credit
A common scenario involves a husband and wife purchasing a car together. For example, she traded in her car in order to purchase this new car. Thus, it is the couple’s understanding that the car will be the wife’s car and is only in her name. However, the car loan is in both spouses’ names.
Unfortunately, the couple divorce. In the divorce agreement, the car that the wife is distributed the car as her separate property when dividing the assets. Along with the car comes the car payments, which the wife will assume.
A few months later the ex-wife defaults on the payments, and the loan company begins to call the ex-husband to collect for the debt owed. Even if the ex-husband can show a divorce court order that the car belongs to his ex-wife, the credit company can still pursue the ex-husband for payment. The credit company can even legal proceedings if the ex-husband doesn’t pay and the wife is found destitute.
The way to avoid this scenario is to have your joint credit contracts redrawn after the divorce. This means removing your name or your spouse’s name from the other’s loan. Often creditors do not easily agree to this because it means one less person responsible for the payment on the loan.
Going through a divorce is stressful and can be expensive. Creditors know this and are less likely to agree on a contract revision if there is current conflict or any previous delinquency on the account.
Initial Consultation With A Tulsa Divorce Lawyer
The divorce process is what you make it — the higher the conflict, the more expensive your case becomes. Hiring a skilled and experienced Tulsa divorce attorney ensures your rights are protected and explains all necessary and unnecessary steps in the process.
Contact an experienced Tulsa divorce lawyer when you need to go through the Oklahoma divorce process.
For a initial, confidential consultation, call 918-924-5526 now.