Don’t Lose Your Good Credit in Divorce
Divorces are going up and credit ratings are going down. Good credit is one asset you must diligently protect during divorce. You’ll lose your good credit if your spouse runs up huge bills on your charge accounts and credit cards. It’s difficult to financially cope during the turmoil and expense of divorce, but three timely steps can protect you from losing your good credit.
First, immediately notify your creditors that you will no longer be responsible for your spouse’s debt. Secondly, destroy and revoke all credit cards on which you have liability. Don’t assume you’re not responsible for your spouse’s credit card debts. You probably guaranteed these credit obligations. Finally, publicly disclaim all liability responsibility for your spouse’s future debts. Most states consider public notice sufficient to inform third parties that you reject liability for future debts incurred by a spouse. Check your state laws. Also, accept your own credit responsibilities. If you can’t punctually meet your obligations during your divorce, tell your creditors before you default. Let your creditors know the reason for your financial problems, but make small, timely installment payments to show good faith. Most importantly, request that your creditors not to report your defaults to the credit bureau.
