How to Protect Your Credit History if You Get Divorced

   

Divorce doesn't relieve you (or your ex-spouse) from financial obligations you made while you were married. And your individual credit history can be affected by all financial activity during your marriage.

If you plan to get divorced (or are recently divorced), make sure you:

  1. Contact the three major credit bureaus. This way, you can ensure that all your relevant credit information — your personal credit history — is in a file under your own name.
  2. Try to maintain a civil relationship. If you maintain open and amicable lines of communication, you're likely to have an easier time handling shared financial difficulties.
  3. Divide up your debts. Decide who's responsible for which account(s) and debt(s), and make sure each creditor knows who will be paying which bills moving forward.
  4. Keep track of joint bills. Even after you and your ex-spouse decide who will pay which particular bills, make sure the payments are made on time. If an account is still in both of your names, the creditor might try to make both of you liable — and late payments from either of one of you will appear on both person's credit reports and affect both your credit scores.
  5. Ask the bank or credit card company to remove your ex-spouse's name. If you decide that it's best to sever joint accounts you had while you were still married, make sure your ex-spouse's name is removed as an authorized user on the accounts you keep.
  6. Inform all creditors in writing regarding outstanding debts. If, for example, your ex-spouse racks up new debt, creditors may still try to collect from you. But taking formal steps to separate your finances from your ex-spouse's can help you avoid bill collectors for his or her debts.
  7. Consider closing joint accounts and taking out individual consolidation loans. Once your divorce is final, take steps to close (old) joint accounts. One way to do that is by taking out a loan to cover your share of the joint bills. This will help ensure that you'll only be liable for those bills you agreed to pay; then you can establish (or re-establish) your individual credit history.

Even though the Equal Credit Opportunity Act (ECOA) prevents your marital status from being a factor in your actual credit score, your credit history can still be affected by your ex-spouse. So if you do file for divorce, contact the credit bureaus to make sure all relevant information is in order.

Download the How to Protect Your Credit History if You Get Divorced how-to guide.