How a Niles Divorce Affects Credit

A divorce affects every aspect of your life, and the law office of M. Gordon Scott wants to prepare you for as many eventualities as possible.  One of these eventualities is the likelihood of credit issues.  Some people incorrectly believe that a divorce decree will prevent a creditor from coming after one spouse to collect marital debts.

When you are married and establish credit, you and your spouse sign a contract stating that you will make the appropriate payments.  A divorce decree does not override this agreement.

Protect your credit with Niles divorce help

Some ways to avoid debt disputes and problems are:

• Communicating with your spouse
• Asking companies and banks to transfer the debt to the responsible party
• Keeping joint bills current during Niles divorce mediation or litigation
• Requesting creditors to remove your spouse, or to close joint accounts
• Considering individual consolidation loans to pay off joint bills after the divorce

If your spouse runs up a lot of debt during the marriage, separation, or divorce, cancel as many accounts as you can.

Creditors’ rights

Niles divorce law prevents a creditor from closing a joint account just because of a change in marital status.  However, he or she may do so at the request of either spouse.

You can request that your creditors change your joint accounts to individual accounts.  An individual account is one where your creditor considers your income, credit history, and assets, and for which you alone are responsible.  These accounts will not appear on the credit report of your spouse.

A creditor may ask you to reapply before he or she extends you the same credit as an individual, as opposed to a couple.  If you do not work outside the home, if you work part-time, or have a low-paying job, you may not be able to get credit without the income of your spouse.

Protect your credit with a divorce attorney in Niles

Even when your divorce decree assigns debts to separate partners, creditors hold both responsible for the debts.  If your spouse runs up debts that he or she does not pay, your credit history can suffer.

Let us help you.  Contact our Niles divorce lawyers online, or call our office at (847) 329-0101.  We also serve:

• Evanston
• Glenview
• Northbrook
• Skokie