Credit Counseling and Divorce: Managing Debt During Tough Times

12 June 2025

Divorce is like a bad storm—you see it coming, but somehow, you're still never fully prepared for the mess it leaves behind. And when money is involved (which it always is), things get even messier. Debt doesn’t magically disappear when you sign the divorce papers; it stubbornly sticks around, lurking like an unwanted roommate.

So, how do you deal with debt while untangling your life from your ex? Enter credit counseling, your financial GPS during this emotional rollercoaster. Let’s break down how you can manage debt during a divorce without losing your sanity—or your shirt.

The Money Drama No One Warned You About

When you said, “I do,” you didn’t think it also meant “I do agree to take on a pile of debt together.” But here we are. Whether it’s credit card debt, personal loans, or even a mortgage, splitting finances during a divorce can feel like an episode of Survivor—except you didn’t sign up for it.

Before you start arguing over who gets the couch, take a deep breath and tackle the real problem: how to divide and manage your debt without ruining your financial future.

What Is Credit Counseling (And Should You Care)?

Think of credit counseling as financial therapy. It’s a service that helps people tackle their debt by offering financial education, budgeting tips, and debt management plans. And if there’s ever a time to get professional money advice, it’s during a divorce.

A credit counselor can help you:

✅ Understand how debt will be divided in the divorce
✅ Create a plan to pay off what you owe
✅ Negotiate with creditors to lower interest rates
✅ Avoid bankruptcy (because that’s the last thing you need)

And no, credit counseling doesn’t mean someone will tell you how to live your life. It’s more like having a financially savvy best friend who actually knows what they’re talking about.

Debt And Divorce: Who Gets Stuck With The Credit Card Bills?

Here’s the fun part (kidding, it’s terrible): Divorce doesn’t automatically wipe out shared debt. If you both signed for a loan or credit card, congrats—you’re still both responsible for it, divorce or not.

Common Types of Debt in Divorce:

- Credit Cards – If they’re joint accounts, both of you are responsible. If your ex promised to pay and doesn’t, guess who the credit card company will come after? (Yep, you.)
- Mortgages – If you both signed the loan, you both own the mortgage. One of you may need to refinance or sell the house to avoid problems.
- Car Loans – If the car is in both names, technically, both of you are responsible until it’s paid off.
- Personal Loans – If you took out a loan together, you're both still legally on the hook unless one person refinances it in their own name.

Moral of the story? Joint debt means shared problems—even after the breakup.

Steps to Take When Managing Debt During Divorce

1. Get a Clear Picture of What You Owe

Before you can fix the problem, you need to know what you’re dealing with. Grab your credit report, list all debts, and figure out whose name is attached to what. If your ex has been secretly racking up debt in both your names, now’s the time to find out.

2. Close Joint Accounts ASAP

If possible, close any joint credit cards before things get ugly. The last thing you need is your soon-to-be-ex maxing out a card and skipping town while you’re stuck paying for their shopping spree.

3. Consider a Debt Management Plan

Credit counseling services offer Debt Management Plans (DMPs), which can help lower interest rates and consolidate payments. This can be a game-changer if you’re drowning in debt and struggling with divorce costs at the same time.

4. Talk to Your Divorce Attorney

A credit counselor can help with finances, but your lawyer will make sure you're not getting screwed over legally. If debt division isn’t handled properly, you could end up paying for things your ex promised to cover. (Spoiler alert: This happens more than you’d think.)

5. Avoid Emotional Spending

We get it—divorce sucks. But drowning your sorrows in retail therapy will only make things worse. Yes, a new wardrobe or a spontaneous vacation sounds amazing, but trust me, future-you will appreciate financial stability way more.

How Credit Counseling Can Save Your Sanity (And Your Wallet)

Credit counseling isn’t just for people who are drowning in debt—it’s for anyone who wants to be smart about their finances. During a divorce, having a professional guide you through money matters can help you:

🎯 Create a realistic post-divorce budget – Because your income and expenses are about to change.

🎯 Avoid unnecessary debt – No need to take on more financial burdens on top of everything else.

🎯 Rebuild your credit score – Divorce can mess with your finances, but a solid plan can help keep your credit intact.

🎯 Stay sane – Seriously, having someone who understands finances and divorce-related money stress can be a huge relief.

What If Your Ex Won’t Pay Their Share of the Debt?

Ah, the classic nightmare scenario. You agreed to split the debt, but suddenly your ex is MIA when the bills come due. What now?

- Keep paying your part – It sucks, but missing payments will hurt your credit, not just theirs.
- Talk to your lawyer – If your ex isn’t holding up their end of the deal, legal action might be necessary.
- Call your creditors – Let them know about the situation. Some lenders may be willing to work with you.
- Consider refinancing – If possible, move joint debt into accounts under the responsible person’s name (hopefully, that’s you).

Don’t let your ex’s bad decisions mess up your financial future. Take action before the situation spirals out of control.

Moving Forward: Life After Divorce & Debt

Divorce feels like starting over from scratch, and let’s be real—it’s terrifying. Financially, emotionally, legally…it’s a lot. But with the right plan, you can come out stronger (and smarter) on the other side.

Here’s how to bounce back financially:

✔ Start fresh with a new budget – Your income and expenses have changed; your budget should too.
✔ Rebuild your credit – Pay off existing debt, use credit wisely, and check your credit report regularly.
✔ Save for emergencies – Because life loves throwing surprises your way.
✔ Set new financial goals – Whether it's buying a house on your own, traveling, or simply staying debt-free, have a plan.

Divorce is tough, but your financial future doesn’t have to be a disaster. A little planning, a bit of smart decision-making, and maybe some credit counseling can put you back on track. And trust me—your future, debt-free self will thank you.

Final Thoughts

Divorce is already emotionally draining, and adding money problems on top of it can make things ten times worse. But debt doesn’t have to destroy your fresh start. With some smart financial moves and maybe a little help from a credit counselor, you can get through this without going broke.

So, take a deep breath, grab a coffee (or something stronger), and start tackling this one step at a time. You’ve got this.