VIC Post Separation, Credit Card Debt and Insurance?

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Butterfly

Member
22 February 2016
3
0
1
I hold a credit card in my name only, held from pre-marriage and throughout the marriage until now. After my ex left, I looked into my Insurance into the credit card for insurance payments because I am unemployed and now broke.

I have received a payment so what is he liable for in assets and debts balance? The balance from separation, the balance from mediation post-separation and post-payout? If I spend it (on home maintenance and food and bills from the last 6 months he is refusing to pay despite separating only a month ago), is he liable for that part of the debt again?
 
S

Sophea

Guest
Dear Butterfly,

There are no hard and fast rules as to who is entitled to pay or to receive what in asset division after separation. It is ultimately what you decide as a couple, or (if you can't decide) - what the court decides based on what it believes is fair and equitable in the circumstances.

If a court were to decide, they will generally look at the assets at the time of separation. However, if debts or assets are acquired by either party after separation - sometimes these will also be included in the asset pool to be distributed to the other party. For example, if you ran up a credit debt on your own after separation on necessary household items - because your spouse took all of your joint household items - then the court may deem it fair to split it. But it will depend on each case.

The court would also likely take into account the fact that you are receiving insurance to pay off the card.
 

Butterfly

Member
22 February 2016
3
0
1
Dear Butterfly,

There are no hard and fast rules as to who is entitled to pay or to receive what in asset division after separation. It is ultimately what you decide as a couple, or (if you can't decide) - what the court decides based on what it believes is fair and equitable in the circumstances.

If a court were to decide, they will generally look at the assets at the time of separation. However, if debts or assets are acquired by either party after separation - sometimes these will also be included in the asset pool to be distributed to the other party. For example, if you ran up a credit debt on your own after separation on necessary household items - because your spouse took all of your joint household items - then the court may deem it fair to split it. But it will depend on each case.

The court would also likely take into account the fact that you are receiving insurance to pay off the card.


So I would be better off keeping the use of it to my personal essentials and then the bills that would then be split as he is staying here on and off in the spare room, too, and his contribution is being used for the house, fridge, toiletries, cleaning etc, but just paying the mortgage so if I work it as a 50:50 split?

I don't have my name on all bills so am working on this as I now have a health care card. Should be able to get discounts until I find employment.

What do you mean that the court would be likely to take into account that I need the insurance to pay the minimums off the credit card debt accumulated throughout the marriage? Is that in terms of determining the fair split of assets and debts and possible spousal maintenance for the future due to income disparity (I average $55k he averages between $120-$180k).
 
S

Sophea

Guest
It doesn't really matter how you spend the money, the court will look at what is spent and what is acquired. Not where the money is held or what card it is spent on.

What do you mean that the court would be likely to take into account that I need the insurance to pay the minimums off the credit card debt accumulated throughout the marriage? Is that in terms of determining the fair split of assets and debts and possible spousal maintenance for the future due to income disparity (I average $55k he averages between $120-$180k).

Yes, the court will take everything into account.