Divorce and Credit
Divorce can have significant consequences on your credit report. Those seeking an Alabama divorce should be aware, or should be made aware by their Alabama divorce lawyer and attorney, of the sometimes significant havoc divorce can play on your credit report. If your ex-spouse or soon to be ex-spouse has opened up any credit accounts using your name without your knowledge or consent, that is identity theft. Identity theft is a serious criminal act, and your chances of "winning" a nice divorce settlement just shot through the roof. If you are both listed on a card that either spouse continues to use, you will likely still be liable for charges. Post divorce credit problems can usually be avoided by closing the joint accounts. However, your credit can be interwoven with your ex-spouse for a long time. Check out this excerpt from a U.S. News and World Report Article below:
"The Federal Trade Commission warns divorcing couples that the divorce decrees they negotiate, such as a commitment that one ex-spouse will pay off credit card debt, does not absolve the other ex-spouse from responsibility from the perspective of the credit reporting agencies. Creditors can still demand payment from the other spouse, which can negatively affect credit scores if it goes unpaid."
Thanks to the Moschetti law firm's family law blog for the tip.
