Here are some questions and answers about how credit card debt is handled in Oregon during a divorce. There are always a few exceptions to these rules, but these questions and answers detail the most common ways these issues are handled by Judges in Oregon courts.

How is credit card debt divided in a divorce in Oregon? Oregon has an unwritten rule that once the spouses physically separate, all credit card charges after that time are the “separate debt” of the spouse who made the charge. The reason for this rule is that once the spouses no longer live together, they are no longer acting as a marital unit and paying for family expenses together. They now are each paying for expenses at a separate household and making decisions that the other spouse has nothing to do with. It is not fair for a separated spouse to be responsible for credit card charges that the other spouse makes that are only to benefit that spouse and the children when they are with that spouse.

What about credit card charges prior to separation? In Oregon, credit card debt that was incurred during the marriage and prior to the spouses’ physical separation is called “marital debt” and both spouses are equally responsible for the debt. The reason for this rule is because Judges do not have the time, resources and ability to hear about every credit card charge made during a marriage that the other spouse does not agree with. In order to get spouses divorced and to move forward with their lives, the Judge must accept the credit card debt as it stands no matter what was charged or why.

What if my name is not on the credit card? Even though your name is not on the credit card, if the debt was incurred during the marriage and prior to separation, it is still considered “marital debt”.
What if there is a credit card that one spouse has that the other spouse had no knowledge of? Unfortunately, usually this unknown debt incurred during the marriage, prior to separation, is still considered “marital debt” which means that both spouses are responsible for the debt.

Can you pay for your attorney fees on a credit card? Yes you can pay for your attorney fees on a credit card. However, attorney fee debt is usually considered your own separate debt. Sometimes one spouse has unequal access to money because one spouse works and the other spouse is a stay at home parent. In that case, the Judge might order that a spouse will receive “suit money” from the other spouse to pay for some of his or her attorney fees.

One spouse is out of control and spends way too much money on credit cards. In this situation, it may make sense to let the credit card company know that you are starting the divorce process and ask that your joint credit card is “frozen” so that no more new charges can be made on the credit card. Some credit card companies will honor that request and others will not.

What is an exception to the rule that post-separation debt is separate debt? When one spouse moves out and is not employed, that spouse might be entitled to temporary spousal support and child support. If the other spouse does not voluntarily pay support to that spouse, he or she may be forced to charge living expenses on a credit card until a Judge orders spousal and child support. If this happens in a divorce, the Judge might consider those post separation charges to still be “marital debt.”

Based upon these rules above, your attorney will request that you provide credit card statements from the date of separation. That fixes the amount of marital debt based upon the last credit card statement before one spouse moved out. That marital credit card debt will be part of an asset and liability spreadsheet. On the asset and liability spreadsheet, even though one spouse might be responsible for one particular credit card and the other spouse will be responsible for another credit card, it will be equalized against the other assets and debts so that in effect the debts are divided equally between the spouses.

Debt incurred post separation will likely not be included in the asset and liability spreadsheet as it will remain the separate debt of each of the spouses.
Going through your divorce may cause you to need to charge expenses on a credit card because it is often a difficult financial time. Knowing these rules will be helpful as you think about how the credit card charges will be treated in the outcome of your divorce.