Separating or Divorcing? How to avoid credit card / credit line nightmares | Paul J. Pickering

Separating or Divorcing? How to avoid credit card / credit line nightmares | Paul J. Pickering


Separating or Divorcing? How to avoid credit card / credit line nightmares

  1. If you are separating or divorcing, it is vital to ensure that you have clearly removed yourself from mutual obligations or joint accounts on both credit lines as well as credit cards
  2. Many couples will have credit cards where both people are listed. Any debts incurred on a credit card, will be the obligation of both parties
  3. It is not unheard of for an ex spouse to run up expenses on mutual credit cards, or remove sums of money from credit lines, obligating the other spouse to (At least) half the debt.
  4. While separation agreements can and often do list who is responsible for what, financial institutions typically will disregard these as the agreement you made initially was them guaranteeing the debts incurred. They simply want their money, and won’t care who has to pay it.
  5. Even if the separation agreement clearly points out your spouse is responsible for the debt, if he or she fails to do so, your lending institution / bank will still pursue you. You will have to in turn pursue your spouse in the courts.
  6. Make sure to either pay off all debts before entering the separation / divorce, or remove yourself from the account directly with the lending institution / bank itself
  7. As an extra level of assurance, have the lending institution / bank provide a document from them indicating you are no longer liable for any debts on said credit card / credit line


Just Make The Call….You’ll Feel Better! | April 26th, 2016


I would recommend Paul J. Pickering Limited for helping me through a stressful time due to changes in employment that brought financial pressure beyond my means and then a cancer diagnosis and treatment to go through. It was a relief to have their friendly understanding and sound advice to help me through this rough time. They were happy to answer questions that arose at times through the bankruptcy period, well after my consultation. I would recommend anyone feeling they need advice/ help with financial pressures to call.

About Us

“We started this business in 1990 to provide one on one financial solutions. We are here to help you through your solution with dignity, respect and the highest confidence in your future.”

Paul J. Pickering CPA CA CIRP LIT

Paul J. Pickering and Associates Limited (formerly Paul J. Pickering Limited) was founded in 1990 with the ideas and thought of helping individuals deal with personal debts and the process of financial rehabilitation.

Paul Pickering graduated from the Ivey School of Business, University of Western Ontario in 1976. In 1980 Paul received his Chartered Accountants designation and his Trustee licence in 1988.

While working for a national insolvency firm, Paul saw the need of providing financial services on an individual basis without the structure of a large imposing firm. On November 1, 1990, the firm was born.

Since 1990, the firm has continued to provide one on one service to London and area. All facets of the Bankruptcy process or Proposal process are conducted within the office. Unlike other firms, we do not use contract facilities to provide the counselling required under the legislation.

All consultations are free of charge because we encourage people to understand the process. We leave the decision to the individual as to how they wish to resolve their financial situation.

Our goal is to treat everyone facing financial difficulty with dignity and respect.