There are enough problems going through divorce without worrying on top of that on how to handle the finances.
Joint debt with Credit Cards, installment, auto, and mortgage loans are the responsibility of both spouses and if payments are missed both parties will find negative listings on each of their credit reports.
Medical debts are a problem too, because even if only one person was responsible for the debt it don't matter. Medical debt is considered family debt. They will come after and report bad data on both parties.
Couples usually go to court and get a divorce settlement, saying who owe what. If a creditor tries to bill the wrong party, that person can forward copy of the divorce papers to that company explaining that the other person is responsible. Only problem with this is that the creditor was not a party of the agreement, they don't have to honor the divorce papers. They can still come after both parties.
Usually in this case the injured spouse has to pay the bill, then turn around and sue the ex-spouse in court. If the ex-spouse pays then the injured spouse would need to update the court house that the debt has been settled.
A good many times the ex-spouse finding out they have a judgment against them will run to the court house and file bankruptcy and include the injured spouse so as to not have to pay them.
Before it even gets that far, both spouses should contact the lenders before the divorce and explain to them that they will be needing to separate the joint status. If the account holds no balance usually the creditor will comply. But if there is a balance, they may insist that the balance be paid first - then they will close out the account and issue 2 new separate accounts.
Not all the time can a couple do this, the balance might be too large, in this case the spouse responsible for the debt should apply for a new card or installment loan and balance transfer the balance off of the joint account. That is provided you can convince that person to do this.
Just be careful and try to preplan your exit route when facing divorce.
Thanks for the informative post. Divorce is a sticky issue. All divorces that have a lot of debt acquired during the marriage should be handled by a reputable attorney. Without one a person opens themselves up for further finacial problems down the road. Divorce is not eay but the aftermath can be worse.