Divorce and Credit
The reality is that divorces are unpleasant and frequently involve legal battles between the two parties. Not only can divorce lead to emotional strain, but it can also lead to financial disaster as well. Any shared accounts and co-signed loans are the major source of the issue.
During a divorce, the responsibility of marital debt is divided between the two spouses through a divorce decree. Most consumers assume that this division carries over to the actual accounts and they are absolved from the responsibility of the debt. In reality, divorce decrees do nothing to end responsibility for shared accounts. This way of thinking is legal and accurate. It completely comes down to who signed on the dotted line when opening the loan or credit card account. The divorce decree does NOT supersede the actual contractual agreement and all parties attached to the account can be held liable no matter what the court rendered. In order to avoid these issues, divorced couples should close or refinance all shared accounts. Any shared or joint accounts such as credit cards, auto loans, and mortgages will continue to be a joint responsibility until you work directly with the financial institution to resolve the issue.
Premier Financial Solutions has successfully worked with many people helping them to rebound from the financial strife caused by divorce. Contact me to find out how I can help anyone facing this type of situation.
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Kevin D. Weier
Premier Financial Solutions, Inc.
Three Point Place
Madison, WI 53719
cell: 608.774.2434
phone: 608.268.6677
fax: 866.311.7478
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