Q: What if your spouse is an authorized user and you sign a separation agreement that says she is to be responsible for the account, but she is then irresponsible? Does the legal agreement have any standing?
A: Unfortunately, the only legal agreement that means anything to your creditor is the cardholder agreement you signed saying you would be responsible for the account — including any charges made by any authorized users. The only way the legal separation agreement will help with paying your creditor is if you take your spouse to court to enforce it. This can be expensive and I would not recommend it unless you have no other choice.
The good news is that you said your spouse is an authorized user. As the cardholder for the account, you can have her removed from the account and her credit card associated with the account canceled. However, do certain things first: One, check with your attorney on whether removing your spouse from the account will violate any terms of the separation agreement. If it does, you may need to file an amended agreement with the court. Second, let your spouse know that you are removing her as an authorized user and canceling her card. Explain that you can't afford to pay her charges and are taking action to protect your credit.
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Next, take a look at any other joint credit accounts that you might have for which your spouse is responsible. I'd keep a close watch on those to assure that they are being paid as agreed. Particularly, assure that any secured loans such as your mortgage(s) and car loan(s) are being paid.
Another thing to keep in mind with debt among separating or divorcing spouses is whether you live in a community property state. If you live in Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington or Wisconsin, you can be held legally responsible for debt acquired during your marriage, even if the account is solely in your spouse's name.
Should you be moving toward divorce, it is a good idea for any joint credit-card accounts to be closed and the balances transferred to accounts in each of your names.
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