Divorce

Protecting Your Future From Your Past

The decision to split is made. At least two lives will change dramatically. But the world will little notice the changes. While the split will dominate two adult lives, to the rest of the world what is going on will be a secret, something unknown unless someone provides the information to the creditors. Yes, there could be court decisions that are a matter of public record, but those court rulings are not on the creditors. The creditors only know what is going on if they are notified – and that is not usually the attorney’s job, and never the court’s job as related to credit. You are the best one to send out the notification to your creditors. Now you two are going to have to divide the assets you two created together: if you bought cars, planes, a house, or furniture, or had children while you were together, these created values are to be shared as determined by your attorney and the courts. While courts recognize that ownership of property and debt is an obligation that can be allocated, the aspect of future obligation created in a joint account is rarely addressed by an attorney or an arbitrator/mediator or a judge. What that means to either party on the account is either one can still make charges on the account and both of the original signers are still responsible because that responsibility is not typically included in the allocation or division of assets. The court system may address active joint accounts or property assigning responsibility for debt at the time of allocation, but such a ruling or court decision is not binding on the lender or creditor. A “joint” account is one where either of two parties can sign, make separate charges, and make separate payments, but because both signed, either one is responsible for the balance and/or the monthly payments. Learn how to protect yourself from credit damage after your divorce.