When couples file for divorce, one of the things they often fail to consider is the effect it could have on their credit. It all depends on how their credit accounts are set up.
For instance, if a couple has “joint” credit cards and the courts determine that one ex-spouse is responsible to pay a joint account, the credit scores of BOTH individuals will suffer if the party responsible for making the payment fails to pay or pays late.
This can be the case for credit cards, department store cards, car loans, or any other type of joint account.
The bottom line is that if your name is on the account and that account becomes delinquent, then your credit will be compromised, even if your ex-spouse is court-ordered to make the payment.
The best case scenario is to terminate joint accounts whenever possible, but if you have questions or concerns about your specific situation, feel free to contact our office.