Repairing Credit after Divorce

Divorce can negatively impact your credit and credit score. Repairing credit after a divorce is common. The first step in repairing credit after a divorce is to know what accounts you have that are joint accounts. Repairing credit after divorce can be more difficult in a community property states. This is because creditors can still come after you for any debts incurred in individual accounts of your ex-spouse, making repairing credit after divorce difficult without paying off the debt in full. Most of the time, credit problem due to credit card debts is the one that needs repairing after a divorce.

Repairing credit after divorce - how to guide

When you are going through a divorce process, you need to know what accounts you have joint with your ex- spouse. The same applies to you if you are getting separated from your ex-spouse. If your ex spouse does not pay his or her bills, your credit, credit report and credit score will be affected.

In repairing your credit after a divorce, send a certified letter to the credit card companies or any lenders whose money you owe and tell them that you are getting a divorce, separated or in the process of getting a divorce. You must formally ask them to take you off the joint account for any obligations incurred after the date of that certified letter.

Repairing credit after divorce in community property states

In community property states, it is harder to repair credit after divorce. Examples of community property states are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, and Washington). In community property states, creditors can hold any divorced couples responsible for the debts during marriage, no matter if they are in joint accounts or not.

Most couples will try to negotiate the debt settlement and divide the responsibilities between themselves. However, if the divorced couple cannot, the court will usually divide assets and debts for them. Either way, in you attempt at repairing your credit after a divorce in a community property state, creditors can still come after you for joint debts, even in individual accounts.