Credit Issues In Divorce

The Equal Credit Opportunity Act requires that companies reporting to credit bureaus must make their reports in the names of both husband and wife if both use an account or are responsible for repaying the debt.

What if the account is not in my name?

Under the Equal Credit Opportunity Act, creditors must consider the credit history of accounts women have held jointly with their husbands.

Some women who are divorced or widowed might not have separate credit histories because credit accounts were listed in their husband's name only.

If you can show that an account reflects your own creditworthiness, creditors must look at the record. If you handled all accounts properly when married and paid bills from a joint checking account, point this out.

You can also try to show that an account doesn't reflect on your own credit worthiness: - for example, if your "ex" was a bad credit risk, point this out.

Open your own accounts to be sure of starting your own credit history

Who is responsible for our payments?

During marriage, both spouses are responsible for joint accounts, and they should appear on the credit report of the husband, as well as the wife.

After a divorce, both spouses remain responsible to pay for joint accounts. It is up to you to ensure that joint accounts are closed. A creditor cannot close a joint account because of your change in marital status without the permission of one spouse or the other. A creditor can close a joint account at the request of either spouse.

As an alternative, you may be able to get the creditor to remove you or your ex-spouse from responsibility for the debt, or to convert the joint account to individual accounts. You might be required to reapply for credit individually. Based on your new applications, you could be given or denied credit. In the case of a mortgage or home equity loan, refinancing might be necessary in order to remove a spouse from the obligation.

After making your post-divorce changes, order a personal credit report to verify that the accounts are listed the way you want them.