Learn: Divorce and Credit
by Gerri Detweiler
Q: My husband and I are separating and virtually all
of our accounts are joint accounts. I have no idea
where even start trying to sort this out. Should we
separate our accounts now, or will that be taken
care of in the divorce? What do I tell our lenders?
A: If it looks like you'll be divorcing, you should
definitely separate your accounts as soon as
possible. In the divorce process, responsibility for
paying off specific balances will be assigned to one
or the other of you. But, since you both agreed to
be liable for those accounts when you took them out,
as far as the creditor is concerned, you'll both be
responsible until those balances are paid off --
regardless of what the divorce decree says. That's
why you don't want to keep those joint accounts open
any longer than you have to. I've seen many a case
where a vindictive spouse runs up new balances,
skips town, and leaves the ex holding the bag.
Call your creditors, explain the situation, and ask
to close the joint account and open a separate
account in your name only. Then, immediately send a
certified letter reiterating the conversation. If
the person you speak with is uncooperative, work
your way up the ladder until you find someone who
will assist you. This is a pain, I know, but it's
too important to ignore. Good-luck to you!
About Gerri Detweiler:
A consumer educator and advocate, Detweiler has been helping Americans better
manage their money for more than a decade.
She has written articles for publications including Woman's Day magazine and Bottom Line,
and has been quoted
in numerous national publications including The New York Times,
USA Today, The Wall Street Journal, and The Washington Post.
Gerri is the author of
"The Ultimate Credit Handbook"
and a co-author of
"Slash Your Debt - Save Money and Secure Your Future".