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Credit, debt and division of assets in divorce

Couples in Georgia who are divorcing often need to work out issues regarding the division of their assets and debts, and they may also need to consider how this will affect their credit reports. Individuals should make certain that they close any joint accounts shared with ex-spouses because they may still be held responsible for those accounts. They should also remove authorized users from individual accounts since the owners of those accounts are liable for the debt.

A divorce decree may divide debts between a couple, but creditors are not necessarily bound by the divorce agreement. If two individuals share a debt and one is supposed to take responsibility for it but does not, the creditor may pursue the other one. The delinquent debt may also appear on the credit reports of both individuals.

During a divorce, individuals should keep up payments and keep an eye on their credit reports. Creditors may not agree to convert joint accounts to individual ones. An individual who wants to change a joint account to an individual one may have to close the account and reapply for a new one.

Family law attorneys can assist with attempting to negotiate an equitable division of assets and debts. As the divorce agreement is worked out, individuals should keep their credit standing in mind. Assigning a joint debt to an ex-spouse who has no means of paying the obligation could lead to credit problems later for the other spouse regardless of the agreement. Individuals may also want to seek the advice of counsel to ensure that their spouse is not attempting to hide assets.

Source: FindLaw, "Credit and Divorce", accessed on Feb. 5, 2015

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