Over the next couple of weeks we will cover segments regarding credit and divorce to provide a better understanding of the process, and additionally provide tips to help plan for your finances after a divorce. Today we will cover the effect of a divorce decree and responsibility of accounts.
The first question that is asked when an individual is moving forward with a divorce proceeding is, “Will a divorce affect my credit?” It is important to understand that your marital status is not an item that is considered within a credit score calculation, therefore a divorce does not affect your credit. What does affect your credit scores is the aftermath of how joint accounts from the marriage are handled. A majority of married couples will have various joint accounts, so it is imperative that leading up to and after the divorce these items remain maintained.
This brings up the next question, “Does my divorce decree eliminate my responsibility of joint accounts?” A final divorce decree does not nullify the original joint agreement. When you open a joint account, or cosign, both parties are equally claiming responsibility of the involved debt. Court documentation may state your spouse is responsible for specific debts, such as a joint auto loan, but the original agreement will reflect both parties are responsible for the debt. If your spouse were to default on the auto payment, it would ultimately affect your credit as well as theirs as it was originated as a joint account.
Your divorce decree does not eliminate your responsibility of the involved accounts, but it does help you seek legal action against an ex-spouse who isn't abiding by the court order to make payments on the account as needed. Join us next week as we cover how to properly manage joint accounts to ensure no negative information is reported onto your credit during and after a divorce.
MSI Credit Solutions provides superior credit restoration and comprehensive consulting services that are reliable and affordable. For any questions or to schedule a free credit consultation, contact us at (866) 217-9841.
*The information in this article has been provided strictly for educational purposes.
