The data on how many marriages end in divorce are shocking. And as emotionally painful as a divorce can be all too often it also has an highly damaging consequence on your money besides.
Scores of individuals who have had great credit for years and years end up with troubles on their credit subsequent to a divorce. Divorce is one of the main things that cause delinquent credit for many persons.
Did you know that when you are married you and your spouse are often equally treated as likewise responsible for repaying loans like mortgages, car payments and credit cards? When the split-up happens the courts usually dole out responsibility to one or the other party. However, even though this is by order of the court many times the creditors will overlook it, more than ever if the loan goes delinquent.
You have to know that a credit report will not reflect a decree of divorce. If a payment is missed by the responsible spouse the creditors can and will attempt to collect from the other party. Not only that but they will report the delinquency on both spouses credit reports. If your ex-spouse is accountable but doesn’t pay, you will be held accountable.
Since you have separate households and you are no longer receiving mail or notices at the same address, you may not even be aware that there is a difficulty with the old debts until it is too late and it is already reported on your credit.
While having your credit report being affected may seem bad enough if the other partner decides to declare bankruptcy, you could be held liable for the full amount of the balance due even though the courts assigned it to your ex spouse. You may be targeted by the creditor as the lone choice accessible for them to collect the balance.
It is disappointing but at this time the credit system is awfully unfair to the parties of a divorce. Often the only way to completely finalize a divorce is to declare bankruptcy. This is very disastrous if there is one party who strives to be responsible and very much needs to keep a untainted credit record.
Going through a divorce is just one instance of why it is so important that we have the right to repair our credit. Any item on a credit report, including a bankruptcy can be disputed if you will that it is inaccurate, misleading, incomplete, untimely, ambiguous, biased, unverifiable or unclear.
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