Child-Centered Divorce: Debt After Divorce Warning

Child-Centered Divorce: Debt After Divorce Warning
Debt
after Divorce can Affect your Credit Score
By
Rosalind Sedacca, CCT

Divorced or not, we all understand the importance of having
a high Credit Score. Unfortunately, when Divorce Decrees are drawn up some
simple attorney errors or oversights can result in long-term negative affects
on your personal credit.

Divorce Decrees identify who is awarded what debt. It is
essential, therefore, that debts that came from joint accounts are only in the
person's name that is awarded that debt per the decree. In most cases the
decree is a simple agreement between divorcing couples. It does not separate liabilities - and that's where the problem
lies.

If, while you were married, your significant other had created some debt on
your joint accounts, both of you are affected. Each of your social security
numbers are attached to the obligations -- and all three credit bureaus have
this information.

When you decide to divorce, a Divorce Decree is not the best
way to handle this debt. The reasons become obvious when you explore a number
of likely possibilities. What if, a couple of years after the divorce, your ex decides
to be late on a debt obligation that is still reporting in your name? Imagine
what will happen to your credit score! It
can suddenly drop 150 points - and you may not even know it!

Unfortunately, this is not uncommon. And the problem is now
yours even though the debt was awarded to your ex.. What if it's a house at
stake and your former spouse decides to let it go to foreclosure? Are you aware
that you cannot buy a home for the next three years because of the foreclosure record
on your credit report?

Here's some sound advice offered by
Mike Clover of
www.creditscorequick.com
- http://clicks.aweber.com/y/ct/?l=9v06h&m=LNJIkMG0NUZMxH&b=mOixR8BBEl6d4pdHeWmq0g
.Clover insists that divorcing couples should never rely on the other
spouse to pay bills that were awarded to them per Decree. In essence, this is a
disaster waiting to happen. He says these issues must be tackled up front so you
are not vulnerable once the divorce is final.

If you are among those who have already made this mistake, it
is important that you go back to court to get those debts off of your name. If
a house is involved especially, get it refinanced out your name or sold,
depending on the situation. If your ex is behind on the mortgage you might want
to go back to court and take over the mortgage payment in return for having the
house awarded back to you.

Divorce is tough enough without having to deal with
financial crises in the months and years to follow. Be aware. Make sure you
don't have debts in your name that get awarded to your ex. Don't put him or her
in the position in which they can ruin your credit. If you are not sure about
your credit rating, get your current credit report with credit scores to make
sure there is no damage done. There are many resources on the internet for
accessing this information. Don't put it off!
* * *

Rosalind Sedacca, CCT, is the author of the new ebook, How
Do I Tell the Kids ... about the Divorce? A Create-a-Storybook(TM) Guide to
Preparing Your Children -- with Love!
For more information, free
articles on child-centered divorce and her free ezine, go to: http://
www.childcentereddivorce.com