When one spouse damages credit during a marriage, divorce does not automatically eliminate shared responsibility for that debt. Arizona courts divide marital debt under community property rules, but the law allows accountability to be adjusted when one spouse’s actions caused financial harm. These issues often come to light late in the process, after accounts have been drained or payments have already been missed. If you are dealing with debt tied to spending you did not control or approve, understanding how Arizona law addresses debt, credit, and financial misconduct can shape what happens next.
How Arizona Law Divides Marital Debt vs. Credit Responsibility
Arizona is a community property state. That means most debts incurred during the marriage are presumed to be shared, even if only one spouse’s name appears on the account.
The court’s division of debt determines who must pay whom after divorce. It does not control how lenders report accounts to credit bureaus. From a practical standpoint, creditors can still pursue either spouse if both were liable on the account.
This creates a gap between:
- Legal responsibility under the divorce decree
- Practical exposure to credit damage with banks and credit card companies
We help clients plan for both, not just what the decree says.
When One Spouse’s Spending Can Be Reallocated
Arizona courts can adjust debt division if one spouse engaged in abnormal or wasteful spending. This is often called marital waste.
Examples may include:
- Gambling or excessive discretionary spending
- Secret credit cards or loans
- Using marital funds to support an affair
- Draining accounts shortly before filing
If proven, the court can assign a larger share of the debt to the spouse who caused it. Documentation matters, including statements, timelines, and patterns of use.
Violations of Automatic Temporary Restraining Orders (ATROs)
Once a divorce is filed in Arizona, both spouses are bound by automatic temporary restraining orders on financial conduct. These orders restrict actions such as transferring, concealing, or unreasonably spending marital assets.
The court can order remedies if a spouse violates these rules by:
- Emptying accounts
- Running up new debt
- Closing joint credit lines
- Selling or transferring property
These may include reimbursement, debt reallocation, or sanctions. We regularly address ATRO violations and know how to present the financial evidence clearly.
Bankruptcy and Divorce, Timing Matters
In some cases, bankruptcy becomes part of the conversation. Divorce and bankruptcy intersect in complicated ways, especially when credit is already damaged.
Key points to consider:
- Bankruptcy does not automatically discharge obligations created in a divorce decree
- Certain debts assigned to a spouse may still affect your credit if accounts remain joint
- Filing before or after a divorce can change leverage and outcomes
We often coordinate with bankruptcy counsel to help clients avoid surprises and reduce long-term harm.
Protecting Your Credit During and After Divorce
Even when the law is on your side, credit protection requires proactive steps. Waiting until after the divorce can limit your options.
Steps we often recommend include:
- Freezing or monitoring your credit
- Closing or refinancing joint accounts when possible
- Including deadlines and enforcement language in the decree
- Rebuilding credit early through individual accounts
When you are facing damaged credit tied to your spouse’s actions, planning is as important as legal division.
Holding a Spouse Accountable Without Hurting Yourself
Many clients want fairness, but they also want stability. Those goals can conflict if accountability is pursued without a strategy.
We focus on solutions that:
- Address misconduct directly
- Reduce future financial entanglement
- Limit ongoing credit exposure
- Create enforceable outcomes
Arizona courts allow flexibility when facts support it. The key is presenting those facts the right way.
Take Control of the Financial Side of Your Divorce
Divorce involving debt and damaged credit is not just a legal issue; it is a long-term financial one. You deserve answers that reflect how the system works in real life, not just on paper.
If you are dealing with debt caused by your spouse’s spending or credit misuse, we are ready to help. At Cohen Family Law, we work with Arizona clients to pursue fair outcomes and protect what comes next. Contact us to discuss your situation and options.
