How can a domestic partnership agreement address joint credit cards and debts?

By Bari Zell Weinberger
November 17, 2017
How can a domestic partnership agreement address joint credit cards and debts?

You’re not responsible for your partner’s debts just because you live together. However, you are responsible for debts that you have agreed to pay. If you and your partner have a debt in both of your names, like a joint credit card, then the issuing company can hold both of you responsible for paying for it. A cohabitation agreement can create terms for what happens to credit card debt and other debt at the end of the relationship.

Think of the picture before agreeing to any terms. If the debt on the credit card is truly 50/50, you may be tempted to agree to simply each pay half of the credit card bill each month until the debt is paid off. But what if your ex stops paying their half at some point? This will affect your credit and lead to late fees, interest, or penalties while you may find yourself paying the entire bill to keep the creditors off your back.

One way to avoid this kind of worst-case scenario is to have an agreement that stipulates all joint credit cards must be closed out and paid off according to a certain division, whether it be 50/50, 70/30, or even one of you absorb the 100% in accommodation for some other term if the relationship ends.

The agreement could stipulate that proceeds from the house will pay off all of the joint credit card debt before it’s even divided.

Bari Zell Weinberger is the owner and managing partner of Weinberger Law Group in New Jersey. She is Certified by the Supreme Court of New Jersey as a Matrimonial Law Attorney.

Back To Top

November 17, 2017
Categories:  Financial Issues|FAQs

Add A Comment


Allowed HTML: <b>, <i>, <u>, <a>



Divorce Lawyers

Certified Divorce Financial Analyst

Find all CDFAs

Divorce Mediators

Find Divorce Mediators

Business Valuators / CPAs

Find Business Valuators / CPAs

Collaborative Practice

Find Collaborative Practitioners

Reason for your Divorce

Why did your relationship end? If there's more than one reason, choose the strongest factor.

Money Problems/Arguments
Physical/Emotional Infidelity
Physical/Mental Illness
Physical/Emotional Abuse
Alcoholism/Addiction Issues
Basic Incompatibility

Copyright © 2017 Divorce Magazine, Divorce Marketing Group & Segue Esprit Inc. All rights reserved. Reproduction in whole or in part without prior written permission is prohibited.