Don't Let Credit Issues Add To The Pain Of Divorce
Those who have gone through the process of a divorce, or are close to someone who has, fully understand how painful it can be. However difficult they may be to deal with, some issues must take precedence if you are going through this situation. Monetary and credit-related matters are particularly important.
Credit card accounts can be either individually or jointly held. Numerous married couples take out joint accounts, or one may authorize the other to have user privileges for that line of credit. The choice in this matter depends on the financial status of the husband and wife. A joint account allows couples to bolster each other's credit history, while individual accounts make only the cardholder responsible for payments.
If the emotionally draining avenue of divorce becomes the only method with which a married couple can put an end to their problems, credit must be taken into consideration during the process. Holders of joint credit card accounts will be held responsible for the card's monthly payments even if their marriage is legally concluded.
The best way to address this issue to the benefit of all involved, so that no further stress is put on the husband and wife who are divorcing, is to close joint accounts and individual accounts for which a spouse was an authorized user.
As an alternative, you could ask your creditors to convert a joint account into an individual account. This may necessitate that you reapply for the line of credit as a single person.
The possible consequences of maintaining a joint credit account during or after a divorce can be disastrous. If a husband is required as part of the agreement to pay the balance on such an account and neglects to do so, the wife will likely be sought out by creditors and asked to pay the balance, potentially damaging her credit standing and putting her in dire financial straits.
Do you have a joint or individual credit card account?