When you obtain a divorce decree, you divide your property according to what the judge decrees and move on. You would think that this was all there is to it when it comes to finances. However, unless you inform all the three credit bureaus about this development, the financial status of your spouse would still reflect upon your credit report as the joint account does not get dissolved automatically.
The creditors would consider you as one entity until you close the joint account(s) you have and inform both the creditors as well as the credit bureaus. You need to keep in mind that the negative comments that find place on your credit report due to the financial mismanagement of you ex-spouse cannot be erased. Therefore, it is in your interest to take immediate steps to close all the current accounts and name the responsible person for paying the debt for the particular account.
What If That Is Not Possible?
Sometimes it so happens that the creditors do not find it feasible to divide the account as you and your spouse might not be financially stable enough to solely shoulder the loan. In such cases, the creditors would not accept the separation of accounts. If such is the case, you need to find legal recourse at the earliest and pin the loan repayment responsibility as the law dictates.
This is a little murky since the legal body would take into consideration the fact that the creditors are not to suffer because of your decision to divorce. Therefore, you need to work out a reasonable method to liquidate the loan so it would not reflect negatively on your credit report. In such cases, it is always advisable to look for ways to come to a mutually acceptable agreement regarding the payment schedule and amount each one of the estranged spouse should end up paying.
Revise Your Credit Standing
There is another aspect in your credit report that would need your attention post divorce: your credit standing. In most cases, your marital home, car, and all major purchases would reflect as your credit and savings on your credit report. Post divorce, when this property is divided, this needs to be reflected in the credit report as well. Unless this is done, your spouse can still get loans or mortgages on the power of credit standing that shows in the credit report, which may cause problems to you at a later date when he or she defaults payment.
Do It Now
Finances can become a big mess after the divorce, more so if both spouse chipped in to build common property. However, it is very important that you take appropriate steps and eliminate ambiguity as much as it is possible so negative remarks that belong to your ex-spouse do not find their way into your credit report.
Keep in mind that once these remarks are posted in your credit report it may not be possible to have them removed, because legally speaking they belong there unless you have taken steps to inform your creditors and credit bureaus about the separation of accounts.
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