• 08
  • January
    2012

After a divorce, joint debts do not magically disappear. Residents of Maryland, beware! If you share a credit card with your soon-to-be ex-spouse or co-signed for a mortgage, make sure to address those debts as part of the property division process during your divorce.

Even if you divide your debts in a fair and rational manner, keep an eye on your former spouse's debt payments. If your former spouse suddenly stops paying his or her bills, you could still be responsible for that money.

A bank or creditor should be able to provide you with online access to track your former spouse's payments, if it is a joint debt. Remember, any missed payments could wind up on your credit report.

If you have filed for divorce or plan to file for divorce, contact your creditors and start working to close joint accounts. Check to see if your name can be removed from joint accounts or debts. If you are the primary account holder and your former spouse is listed as an authorized user, close the account.

Open your own saving account and checking account before the divorce or separation is official. If your ex-spouse fails to pay their bills and trashes your credit rating, opening a new account can be a challenge.

Seek short-term assistance from your mortgage lender or credit card carrier if you need it. If your former spouse is falling behind on debt payments, see if a few months of interest-only payments is a possibility. It is important to be honest with the lender and explain the situation. Be prepared to take over payments to protect your own credit rating. If your spouse is not making payments they agreed to make in the divorce decree, your credit rating is on the line, too.

Before you finalize your divorce, check your credit report for outstanding debts in your name.

Source: Yahoo Finance, "How to Get Rid of Your Ex-Spouse's Debts," Brian O'Connell, Dec. 22, 2011.