How divorce can effect your credit

If you are considering divorce or separation, pay close attention to the status of your credit accounts. Many married couples open joint accounts or accounts in which a spouse is an authorized user. Outstanding balances on joint or authorized user accounts at the time of a divorce are the responsibility of both you and your spouse. Often times couples sign a divorce decree which states financial responsibilities for each person after the divorce is final. If one person does not hold up their end of the decree and defaults on payments, the creditors will come after the other divorcee. Creditors will correctly tell you they are not parties to divorce decrees and will insist both people are still legally responsible for paying off joint accounts. If you have a joint account, it is important to make those payments so your credit won't suffer. If you are going through a divorce you many want to close joint accounts or reopen the accounts as individual accounts.

 

 

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