Divorce and Your Credit

Of all the many financial issues that divorce has an influence on, one of the least talked about is how a divorce can affect your credit. There are many complex issues surrounding both spouses’ credit after a divorce, and they are more complicated because of joint accounts, credit cards, and other debts that may be incurred during a marriage.

A divorce decree does not absolve one person of debt liability. If, for example, a couple has significant credit card debt, the divorce decree can give one person or the other responsibility for that payment. If that person does not pay the debt, and creditors get involved and try to collect, then they are still allowed to try and collect the debt from the other spouse not specified in the decree. Also, the lack of payment will appear on the credit history of both individuals.

In some states, even individual debts or accounts incurred during the marriage can be the responsibility of both parties after a divorce. Florida does not have this statute, but many other states do. It is important to understand the credit implications of your divorce decrees and other financial decisions before making any binding agreement.

Contact Us

If you or someone you love is considering a divorce, legal counsel can be a very valuable tool. For more information, contact the West Palm Beach divorce lawyers of Eric N. Klein & Associates, P.A. by calling 561-353-2800.