In this day and age, Americans use credit cards for most everyday purchases. It is faster and often easier with the buy-now-pay-later set up. While they might be easier for everyday use, it is also true that credit cards as a whole are a bit more complex to manage than cash.
This often becomes plain to see if you face a divorce in North Carolina. Among the various assets you must divide, your credit card accounts stand out as a direct link to your credit score, as well as a primary form of payment. So, what should you know as you manage your credit cards?
3 issues to consider when handling credit cards in divorce
In a divorce, it is often a good idea to close the joint credit card accounts you share with your spouse. However, before doing this there are some other critical details you must address, including:
- Who is responsible for the debt? Property division not only requires spouses to divide marital assets, but liabilities as well. You and your ex-spouse must address how to manage credit card debt, particularly on your joint accounts.
- Who gets the rewards? Your credit card rewards are also marital assets – and they can add up significantly, whether they are in the form of cash back rewards, travel points or even airline miles. You must determine how to divide these rewards equitably.
- What about credit scores? In today’s world, your credit score is critical. To preserve the good score you worked for, you must handle the division and closing of accounts with great care. CNBC Select lists some key steps individuals should take to navigate this division while protecting their credit, but it can also be helpful to consult with a legal or financial professional.
Addressing these details while protecting your overall credit can be a complex process. It is essential to consider how you can secure your assets in the process of dividing property.