Credit card debt often plays a significant role in divorce—both as a factor in the cause of the divorce and as an obstacle to dissolving the marriage, as responsibility for the debt must be agreed to by the divorcing spouses or determined by the court.

If the spouses live in a community property state (as opposed to a common law property/equitable distribution state) and the credit card was applied for and issued to only one of the spouses, the bank may only be able to seek payment from the spouse in whose name the card was issued and the credit was extended—but in resolving the divorce case, the court (judge) may order community property sold to pay the credit card debt, or may order the other spouse to pay the credit card debt. Community property states generally include Alaska, Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin.

In New Mexico, which is a community property state, credit card debt incurred during the marriage is typically considered a joint debt, meaning both spouses may be equally responsible for it. When a couple divorces, the court will aim to divide all marital debts, including credit card debt, equitably between the spouses. This means that even if a credit card is in one spouse's name, the other spouse may still be held responsible for the debt if it was acquired during the marriage. The court has the authority to order the sale of community property or assign the debt to one or both spouses as part of the divorce settlement. It's important to note that while the court's division of debt is binding on the spouses, it does not necessarily alter the creditor's right to seek repayment from the spouse who originally contracted the debt. Therefore, if the credit card was issued in one spouse's name, the credit card company may pursue that individual for payment, regardless of the court's orders to the other spouse.