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Overview of Divorce
Before the divorce reform movement took place in the early 1970's, countries such as the United States and Great Britain followed a traditional (or fault based) divorce system. This often required the plaintiff be without fault or the divorce could be denied. Some states would only grant a
divorce on the grounds that one or both of the partners had committed adultery. However, the rise of the divorce reform movement paved the road for our current divorce system, which is based on either a single no fault ground, or in some states, a combination of the traditional fault based system and the
no fault ground. The no fault principal requires that a judge grant a divorce if he or she finds that the marriage is "irretrievably broken".
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Divorce and Credit
Traveling down the road to dissolution will require that many loose ends be tied, especially those of a financial nature. Filing for divorce may relieve you of certain obligations to your former spouse,
however, divorce will not relieve you of obligations to your creditors. Understanding the different types of credit accounts that can be opened during a marriage can help you realize what financial obligations you have, regardless of who essentially incurred the debt.
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Types of Credit Accounts
There are two different types of credit accounts: individual accounts and joint accounts.
An individual credit account only examines your credit history, income and assets. That means that YOU are responsible for the debt that is acquired on this type of account. However, if you reside in a community property state (AZ, CA, ID, LA, NV, TX, WA, WI), either or both spouses may be responsible for
debt incurred during the duration of the marriage.
A joint account examines both spouses' credit histories, incomes, and assets. That means that BOTH you and your spouse are responsible for the debts incurred on this type of account, regardless of who actually incurred the debt. Even if a divorce decree states that one of the spouses is responsible for the debt, if
the account is a joint account and one spouse fails to pay, the other spouse may be held accountable for the debt. One spouse's contempt of court is NO EXCUSE for the other spouse's non-payment.
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Important Credit Information
If you are filing for divorce it is strongly recommended that you obtain a copy of your credit report from all three major bureaus.
 This way you will begin to develop a positive payment history, which is exactly what credit grantors are looking for.
If you have joint accounts it is a good idea to notify your creditors of your divorce ask to reopen accounts in only one spouse's name. This is also a good way to make sure that all accounts are being paid. More importantly, it is wise to verify that all of the information in your credit report
is accurate and complete, and this is a great way to help each spouse establish individual credit records.
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Books on Divorce
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Divorce Services
We're sorry, we have no recommended links at this time.
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