An unfortunate aspect of divorce is how it can affect your credit score. When a court divides joint assets and liabilities, it will assign specific debts to your ex-spouse. However, while it may seem that a court of law has the ultimate authority when assigning debt, this doesn't change the terms of credit card accounts and other loans that are acquired during the course of a marriage. If your ex-spouse defaults on a debt, creditors will hold you accountable---and the phone calls and ominous letters will begin. This can leave you in the unpleasant and often difficult situation of finding a way to fix your credit report after a divorce.
Step 1
Acquire a copy of all three credit reports from the major credit bureaus, Experian, Equifax and TransUnion. If you've been receiving calls and letters from creditors, you may already be aware that a joint liability assigned to your ex has fallen into arrears or defaulted. But if bills, such as those for joint credit card accounts, are being mailed to your ex, you may not be aware of any problems. You can obtain a copy of all three credit reports from annualcreditreport.com free of charge once a year.
Step 2
Act in good faith. If a joint account assigned to your former spouse is delinquent, inform creditors that the account was assigned to him during your divorce. This won't absolve you of the responsibility of the debt, but it will show creditors that you are aware of the situation and are willing to work with them.
Step 3
Buy some time. Ask the creditor if the account(s) in question can be converted to interest-only for a short period of time. This may make it easier for your ex-spouse to pay for the debt, if he's having difficulty doing so. However, it still won't absolve you of the debt.
Step 4
Work with your ex-spouse. See if it's possible for her to consolidate the debts into a single loan or transfer them to a credit card that's in her name only. The joint account then goes away, leaving the debt your ex's responsibility. Credit.com notes that this has the same legal effect as the court order that assigned your ex the debt(s).
Step 5
Bite the bullet. If your credit report is showing negative information because your ex-spouse hasn't taken responsibility for debts assigned to him by the court, the only way to salvage your own credit history is to pay them yourself, as painful as this may be, advises Credit.com.
Tips and Warnings
- Sometimes your ex-spouse's post-divorce credit history can inadvertently show up on your own credit report. You can dispute legitimate errors by contacting the credit bureaus directly (see Resources).
- Protect your credit history before and during your divorce rather than wait for a final decree. It's wise to dissolve joint credit card accounts and pay them off rather than wait for debt to be assigned by the court. Similarly, loans for high-dollar items, such as for a car, should be refinanced in the name of one spouse before the divorce. For more ways to protect your credit during divorce, see the Resources links below.
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