U.S. — Individuals face financial risks when credit card debt is not resolved during divorce proceedings due to ongoing joint liability. Creditors are not necessarily bound by the terms of a divorce decree regarding who pays a particular account.

Both spouses typically remain legally responsible for the unpaid balance on jointly held credit card accounts. Credit card issuers can pursue either account holder on a joint account if payments stop. If a former spouse stops making payments on a joint account assigned to them in a divorce decree, the card issuer can report missed payments on the other spouse's credit report, charge late fees to them, and pursue collections against them.

A court order assigning debt responsibility in a divorce decree does not automatically protect a spouse from creditors if the debt goes unpaid. If a credit card is in only one spouse's name, that person is generally responsible for repaying the debt after a divorce. Authorized users are generally not legally responsible for credit card debt.

In community property states, debts accumulated during the marriage are typically considered joint marital obligations regardless of whose name appears on the account. Courts in these states may divide debts between spouses as part of the divorce settlement. Courts often distinguish between debt accumulated during the marriage for shared household expenses and debt incurred after separation for one spouse's individual benefit.

A spouse may have legal options against a former spouse for violating a divorce agreement if they fail to pay assigned debt. Divorce can create a drop in household income. Average credit card interest rates are closing in on 22%, and credit card balances are at record highs. Debt relief options for post-divorce debt may include debt settlement, debt consolidation, credit counseling, or bankruptcy.