When you're going through a divorce, untangling shared finances can feel overwhelming — especially when debt is involved. That's what one listener of Suze Orman's "Women & Money" podcast recently faced when she asked for advice about $18,000 in credit card debt that she thought her husband had been paying.
Orman's advice? Don't rush to pay it off just yet.
The Listener's Dilemma: Shared Debt, One Name
Kristen, a special education teacher and mother of two teenagers, wrote in to the show to ask what she should do with the $18,000 credit card debt she discovered during her divorce. While the card is in her name, the charges were for family expenses — including trips — and she believed her husband had been handling the payments.
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To make matters more complex, Kristen recently learned she would receive $4,000 from her late mother's estate. She wanted to use it wisely to rebuild her financial life.
Orman's Take: Don't Pay It Off Yet
Orman acknowledged the situation was tricky. "This is a hard one," she said. "But I would keep that credit card debt there and make it part of the divorce."
Even though the card is only in Kristen's name, Orman emphasized that the charges were made for joint family use. That means Kristen may have a case for having the debt split in the divorce settlement. "If it was used for family expenses and she can prove it, they may make it half his as well," Orman explained.
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Protecting Yourself Before the Divorce Is Final
Orman also suggested taking a few practical steps to limit further risk. If Kristen's soon-to-be ex-husband was added as an authorized user on the card, Orman said she should contact the credit card issuer to remove him immediately.
Additionally, Orman recommended putting the $4,000 inheritance into a separate interest-earning account under Kristen's name and not using it until after the divorce is finalized.
How Credit Card Debt Is Handled in Divorce
Who pays for what in a divorce isn't always straightforward. According to Experian, whether one spouse can be held responsible for debt depends largely on where they live and how the debt was acquired.
In community property states like California and Texas, debts incurred during the marriage — even in one person's name — are typically shared equally. In common-law states, which make up most of the U.S., the person whose name is on the account is generally responsible, though divorce courts can still assign responsibility differently.
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It's important to note that a divorce decree doesn't change the original credit agreement. That means even if a court assigns the debt to the ex-spouse, the creditor may still come after Kristen if the account is in her name.
Bottom Line: Don't Shoulder the Burden Alone
While Kristen technically owes the debt, Orman's advice encourages her not to assume full responsibility, especially if the expenses were for the whole family. Including the debt in the divorce proceedings gives her a chance to have it split more fairly.
In the meantime, Orman's message is clear: protect your assets, keep an eye on your credit, and don't act too quickly. Divorce is hard enough — don't make it harder by paying off debt that may not fully be yours.
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