Repairing credit problems and handling credit issues through a divorce can be overwhelming at best.

Going through divorce is difficult enough, but not addressing credit issues will only make it worse.

One must understand how to handle credit issues through a divorce. The more you can work together to address your joint finances, the better. However, if you are left to deal with the mess on your own, you can do it successfully will a little help.

You cannot assume that all of your joint accounts will be closed by your ex. You close the accounts, now! Once the accounts are closed you can open a new account in your name only.

Part of repairing credit, it to make a new start and now is the perfect time to get things rolling. Get a copy of your credit report and review it to ensure you are fully aware of all outstanding accounts.

Contact creditors who list joint accounts and let them know that you will no longer be responsible for any new debt taking out by your soon to be ex-spouse.

While this does not absolve you from the debt, it will at least stop any new debt from arising.

In your divorce proceedings, never allow your name to remain on any property, a home or an automobile, where there is debt owed against the property. Sell the property and split the cash for a clean start. Otherwise, if your ex doesn’t pay like he or she is supposed to, you’ll still be paying the bill whether you like it or not.

Repairing credit and protecting your credit should be the goal of both parties. Your income, financial assets and credit history, as well as your spouse's will be considered closely during the divorce proceedings.

You and your spouse are both responsible to the creditor for your joint debt. This holds true even if divorce papers state an assignment of separate debt obligations. Former spouses can run up bills that can hurt their ex-partner's credit history even after the divorce is final, so never allow yourself to share liability with an ex. Only if you sell the property and pay off the debt, can you walk away from the obligation.

Splitting the financial responsibility is never easy. This is a highly emotional time in your life. Here are some steps to take toward repairing credit, steadying your finances so you can go back to single financial responsibility.

• Get your credit report prior to divorce, so that any disputes can be resolved quickly. Order a copy from each of the credit reporting agencies, to get a complete overview of outstanding loans, mortgages and credit card debt to be split up.
• Open bank, credit card and brokerage accounts in individual names, before the breakup is final. It is easier to get credit cards and bank accounts while you are still married and have joint assets and debt. This step is essential to establish credit in your own name.
• Close all joint accounts, to avoid the acquiring of additional joint debt or sudden loss of shared bank assets. Pay off joint credit accounts, preferably by individual bank account check or balance transfer to individual credit card accounts. Close the credit accounts in writing and request that each account is reported as closed by customer. This is key to protecting and repairing credit for you as an individual.
• Keep separate property separate. Any assets, like real estate, vehicles, inheritance, gifts, and money acquired before marriage, that you brought in separately should remain in your name. Don’t put separate assets into a joint account. If you do, they may be considered joint property by lenders.

Divorce is never fun, it’s never intended and it’s never expected. However, when it becomes a reality you should take the necessary steps to repairing credit and protecting your financial future.

» Check Credit History - Accurate Information Is Key
You should check credit history results at a minimum of once per calendar year, if you tend to use credit products. Protect your credit by making you’re your information is accurate.

» Credit History Information - ID Thieves Want You!
Protect your credit history information at all costs. ID thieves are targeting your and your credit information each and every day.

» Credit History Repair - Consumer Credit Counseling
Credit history repair services and credit counseling are just some of the important services offered by CCCS. If you need a debt management planner, this is the only one we recommend.

Return to "Main Articles" Page from.... repairing credit article.