Divorce & Credit
by: Developed from materials provided by the Bureau of Consumer Protection
Joint Debts
A joint debt is one that is in both your name and your ex-spouse's name.
Credit card balances, mortgages, and car loans are examples of things that might be joint debts.
If there is a divorce . . . .
- When you get divorced, the court will divide up your debts.
- If your ex-spouse gets any debt that has your name on it, you can try calling the creditor. Ask that your
name be taken off the debt.
Be aware that:
- Creditors do not have to remove your name;
- Many creditors will not agree to remove your name.
Things to look out for
- It is very important to remember that, if your ex-spouse falls behind on payments, the creditor can come after you for payment.
- The creditor can sue both you and your ex-spouse.
- The creditor can also place negative points on your and your ex-spouse's credit reports.
Who must pay for joint debts?
- While a divorce decree divides debts up for payment, the divorce papers do not control the creditor.
- Because of this, the creditor can try to collect from both of your
- If you get sued for a debt which your ex-spouse got in the divorce, you may have to turn around and sue your ex-spouse.
- In the meantime, protect yourself and your credit rating by paying the debt if you can.
Your Credit Rating
- If your ex-spouse fails to pay on the debt, it can harm your credit rating. This can make it hard for you to get loans in the future.
- If you suspect that an ex-spouse has failed to make a payment, call the creditor and find out.
- You may have to make payments yourself to preserve your credit rating. Your ex-spouse will then have to pay you.
- Talk to a lawyer about your options.
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