Clarification of Joint Debt.

[wmike]

I am 2 yrs into a separation case and have attended a Case Conference already, have had my pension evaluated etc.....I am hoping we're getting to a point where we might draft a Separation Agreement between us and have our Lawyer's approve it and notarize it.

Can someone clarify on what exactly is considered joint debt. Is this any
debt that ocurred during the marriage whether or not the Charge card is in your name or your spouses. For example: If one spouse applied for the credit and did all the application paperwork several yrs ago but cards were issued to both, is that considered joint.?

Thanks.

[logicalvelocity]

Mike,

I would think the debt would be mutual, however since the account is in one person's name, to the creditor, only the one spouse is liable. Banks are not bound to the terms of a separation agreement.

lv

[hubby]

LV is correct that banks only see the card holder as liable.

However in Family law any Assets or Debt incurred during the time together is split 50/50 ... you'd probably be able to claim it in others ways when doing equaization of assets and such.

Hubby

[Lindsay]

Hubby is right.

Mike, if you ended up putting together a net family property statement (a statement that sets out the jointly and solely held assets and debts of both parties), you could create your own statement of adjustments to the equalization. This statement would set out that although the credit card is in your name only, your spouse is responsbile for half of the debt, and as such her half of the debt should be deducted from the equalization payment owing to her (or added to the equalization payment owing to you).

Lindsay