We're all told to check a potential fiancés credit habits and score before entering into a serious relationship, but we often forget to think about the enormous number of credit issues that result from divorce. Should your relationship end in this manner, you may find that your credit allowances will be reduced in the future. In addition, if your spouse runs up a debt, you may find yourself liable for the debt and unable to keep up with payments on your own. Unfortunately, the majority of the credit issues you'll have to deal with won't be easy to resolve.
Separating your creditors
Today, most credit card companies will allow you to designate separate card holders on a single account. For the most part, this won't help you determine who is responsible for each charge made to the account. If at all possible, make sure that all of your credit cards are kept separate from those of your spouse. While this may be tedious to arrange, you can still apply for a new card in your own name and transfer any debts onto it that might be yours in the event of a divorce.
In many cases, if you didn't keep separate credit cards, it may be difficult – if not impossible – to decide who will be responsible for paying joint credit cards. Depending on your situation, you may want to see what you can do with other areas of the divorce settlement. For example, if you know what your monthly minimum balances will be, you may want to apply for alimony to cover what your spouse would normally contribute.
Managing credit issues amicably
Chances are, you've heard of divorce proceedings that take years because spouses can't agree on settlement terms. If you find that your lawyer can't make reasonable progress, it may be helpful to seek the advice of an accountant or debt management specialist. They may be able to teach you how to manage debts on your own or help you find a compromise that will enable you to move forward with divorce proceedings.
Getting help with resolving credit issues
Without question, if you're going through a divorce, both you and your spouse will need an enormous amount of help from certain professionals in your community. Aside from seeing a lawyer, it may also be useful to seek the advice of a debt specialist. This person can help you reach some understandings about joint assets, as well as how to divide your debts fairly. If you find that your former spouse is unwilling to work with you, contact each individual credit card provider to learn more about your specific rights.
Many people realize that being in debt is a serious issue, but if you're planning to get a divorce, a lack of preparation in resolving your debts can be catastrophic. You may find it more difficult to obtain credit or repair existing damage to your credit rating – or you may find yourself forced into a bankruptcy situation. Therefore, even if you firmly believe that your marriage is safe from divorce, you'll need to give some serious thought to ensuring that your credit isn't damaged by any future marital problems.
