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How credit is affected in divorce

Divorce can involve a number of complexities that many soon-to-be divorced Texas residents may not have thought about. In each of the larger divorce issues - e.g., child custody, property division and the like -- there are often small details that may not be initially obvious. Thankfully, attorneys with expertise in family law can often clarify these small details and help divorcing spouses decide on a plan of action.

One detail that may prove confusing to divorcing couples involves property division. More specifically, many may be wondering what happens to credit during property division. There are a number of ways credit can be affected in divorce. Also, the details involved can alter the case. For instance, the type of credit account can make a difference as to how the property division case plays out. An individual account will make it so the person who opened the account is solely responsible for paying off the debt. With a joint, both spouses are responsible for making sure the debts are paid.

Divorcing spouses often need to monitor their credit accounts during divorce. One spouse can hurt an ex-partner's credit by running up credit, even if a divorce agreement designates different debt obligations for each spouse. More complications can arise due to the fact that a creditor is not legally allowed to close a joint account based solely on a change in marital status.

Credit can be an important topic in divorce cases. Knowing how credit is affected in divorce can help divorcing spouses prevent a number of possible mishaps from occurring, such as the accruing of additional debts. Attorneys can help divorcing spouses understand what actions are best taken in order to ensure the way credit is handled during property division is in line with the spouse's wishes.

Source: FindLaw, "Credit and Divorce," Accessed on Jan. 26, 2016

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