Maryland Divorce ~ Credit and Divorce
There is a lot to learn about divorce and your credit status. Making the right moves involving your credit during your divorce is a very important thing to do.
There are only two types of credit accounts : Individual and Joint. You may authorize certain people to use the account with either type of account. There are good and bad things to review with both types of accounts.
Individual Account : Everything about you, your assets, income and credit past are reviewed by the creditor. Regardless if you are married, single or divorced, you alone are responsible for the debt. This individual account will appear on your credit report, along with anyone you have authorized to use this account.
If you open an account in only your name, your spouse (unless given authorization to use the account) may not damage your credit trail.
Joint Account : Everything about you, and your spouse, both financial assets, credit histories, income are subject to review for a joint account. No matter who you agree to make responsible for these bills, the debt lies on both spouses. If your account becomes past due, laws state that both names will be reported to credit bureaus.
When two names apply on one account, a creditor is more likely to trust that any debt will be resolved. Because there are two names on these accounts, both are equally responsible. This is also true even in a divorce. The easiest resolve here is to cancel any joint accounts while you are in a divorce and open you own individual account so that your spouse does not damage your credit.
Money matters ! It’s very important that you take a look at your financial situation and be prepared for anything coming your way. Be smarter, be a step ahead.