How to take care of credit when the couple separates or divorces

The events in family life have a huge impact on all financial aspects.

Although estimates vary, many suggest that half of all marriages in the United States is likely to end in divorce. No matter how much that percentage, the single transition, life in conjunction with separation and then divorce is a complex and difficult experience for everyone.


Among the financial aspects that are affected are the ownership of the assets of the couple must be separated and now every one who need to protect them with appropriate insurance and your credit history, according to the Insurance Information Institute (III).

"When couples are faced with the arduous task of separating not only emotionally but also financially, it is easy to miss important points for your financial well being and often two things to be neglected are the insurance and credit," said Eliane E. Gonzalez, spokesman I.I.I. "A divorce can also have a strong impact on the credit quality of the couple, both in terms of dividing joint accounts and creditors existing at the time of divorce, as it means spending that will come with the beginning of a new stage of life. "

A poor credit history by a former spouse while they are married may prevent one or both parties may obtain credit after divorce. The best way to protect your credit history is to initiate change as soon as you reach the decision of separation and before divorce.

Close joint credit accounts. Especially important to do before you get to talk about a divorce if one partner out of revenge or indiscriminate expenditure incurred disregard of the other then have to take responsibility. While there is balance on a joint account, both spouses are responsible for the balance due. Those debts incurred, whether by one or the other spouse is the responsibility of the two, no matter the account after divorce name change.

Check your credit scores. As soon as possible a separation or the beginning of a divorce to obtain a credit report from either one of the three credit bureaus (credit bureaus): Experian, Equifax and TransUnion. However this is something that should be done at least once a year, but especially when an event like a divorce happens. You can see what the joint accounts and if one is being neglected, will help you decide to cancel or close, mitigating the effects of divorce on your credit.

Keep separate accounts for individual credit. Often, the wives change their name after a divorce, leaving the husband's, but that does not remove the credit history established while married as usually the records are related to their social security number. Now, if he had no individual account would be harder to restart credit separately. Find out if the process can be accelerated by turning some joint accounts (preferably with no outstanding balances) in individual accounts. Thus, both can minimize having to establish new credit after a divorce.

Contact your creditors. Alert creditors that is in the process of divorce. If there is a change of address, remember to report it so that you continue to receive bills and they are paid on time without incurring penalties for late payments.

Negotiate and reach agreement with creditors. If you can not pay off existing debts in full, offer a part exchange for total debt, seek agreement to pay a portion of the debt in exchange for it to be considered paid in full. Get this agreement and release of debt after the final payment in writing, so that stocks do not reappear later and make sure that this type of negotiation does not take a negative mark on your credit history.

Freeze the accounts not to renegotiate. If they can not reach an agreement with the issuer for less than the amount owed, then freeze the account. You may not use any of the spouses and once the divorce is finalized in the agreement of the court may include who should pay the debt.

Make sure all your receipts and invoices are paid on time. A single late payment can hurt your credit history. Be sure to make a payment because it believes that it is the responsibility of their partner. While his name is on the account, you are responsible.

Accounts established under the name of the person who is responsible. The sooner you put in the name of each spouse the appropriate accounts, the better for all and the sooner they can restore your individual credit history, separated from her ex-husband or ex-wife.