Debt & Divorce

• 1). Work directly with the creditor to separate joint accounts. The Federal Trade Commission advises closing joint accounts or those in which your ex-husband was listed as an authorized user. Alternately, a joint credit card account can be converted to your ex-husband's name only. Particularly cumbersome may be refinancing the family home in the name of either you or your ex. Credit.com points out that it's easier to separate joint debts before you divorce rather than after.
  
  
• 2). If debts are still shared after a divorce, monitor how your ex-husband handles them closely, Credit.com advises. Make sure that he's making timely payments toward the debt and that it doesn't go ignored. One way to make sure your ex is taking care of debt is to set up online accounts with creditors to which you both have access. Your ex-husband may unintentionally cause a black mark on your own credit report if a joint debt is turned over to a collections agency or written off by the creditor. Even if your ex bears you no malice, his inability or unwillingness to pay a debt that's reflected in both of your credit reports can cause contention between you.
  
  
• 3). Be prepared to step up to the plate if your ex-husband doesn't make good. Credit.com notes that contacting the creditors and informing them of your divorce won't relieve you of your own liability, but it shows them that you're acting in good faith. They may be more amenable to working with you. See if you can get the creditor to convert the debt to interest only for a short duration--this may help a struggling ex-husband to regain financial footing. Alternately, ask your ex to consider rolling the debts into a single loan for which he is solely responsible. However, if your ex does not or cannot pay debts for which a creditor holds you both responsible, this may require that you pay it yourself if you want to maintain a good credit history.
  
  
• 4). Always get an attorney's advice if you live in a community property state. These states have different laws regarding how debts are during the course of marriage and who bears responsibility for them after divorce. Typically, if your ex-husband took out a credit card in his own name while you were married, he bears sole responsibility for the debt incurred when you divorce. However, if you live in a community property state, you may be held jointly responsible for debts your ex-husband incurred in his name only during the course of your marriage--even if you had no knowledge of them.