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Maintaining Your Credit While Divorcing
CREDIT & DIVORCE
If you're considering divorce or separation, pay special attention to the status of your credit accounts.
If you maintain joint accounts during this time, it's important to make regular payments so your
credit record won't suffer.
As long as there's an outstanding balance on a joint account, you and your spouse are responsible for it.
If You Divorce
By law, a creditor cannot close a joint account because of a change in marital status, but can do so at
the request of either spouse. A creditor, however, does not have to change joint accounts to
individual accounts.
The creditor can require you to reapply for credit on an individual basis. On that basis, the creditor may
extend or deny you credit. In the case of a mortgage or home equity loan, a lender is likely to
require refinancing to remove a spouse from the obligation.
If you divorce, you may want to close joint accounts or accounts in which your former spouse was an
authorized user. You may ask the creditor to convert these accounts to individual accounts.
If you're considering divorce or separation, pay special attention to the status of your credit accounts.
If you maintain joint accounts during this time, it's important to make regular payments so your
credit record won't suffer.
As long as there's an outstanding balance on a joint account, you and your spouse are responsible for it.
If You Divorce
By law, a creditor cannot close a joint account because of a change in marital status, but can do so at
the request of either spouse. A creditor, however, does not have to change joint accounts to
individual accounts.
The creditor can require you to reapply for credit on an individual basis. On that basis, the creditor may
extend or deny you credit. In the case of a mortgage or home equity loan, a lender is likely to
require refinancing to remove a spouse from the obligation.
If you divorce, you may want to close joint accounts or accounts in which your former spouse was an
authorized user. You may ask the creditor to convert these accounts to individual accounts.
If you've recently been through a divorce or are
considering a divorce there are issues involving your
credit.
Understanding the different kinds of credit accounts
opened during a marriage may help shed light on the
potential benefits and pitfalls of each.
considering a divorce there are issues involving your
credit.
Understanding the different kinds of credit accounts
opened during a marriage may help shed light on the
potential benefits and pitfalls of each.
Chicago Illinois Home Mortgage Lender