Every divorce case is unique, but most share common components. These include child support, property spousal support and property division. However, many Texas residents may not be aware of the many complexities that go into these major divorce issues. These complexities, while less obvious, can prove to be immensely important when preparing for a smooth and fair divorce proceeding.
One complexity that many may not be initially obvious is what happens to credit during property division. There are a number of factors that affect what happens to credit in a divorce. For one, the type of credit account can have a big impact. Whoever opened an individual account will usually be the only one responsible for paying off the debt in such cases.
Joint accounts, on the other hand, are often handled in a different way. Much of the time, both spouses will be responsible for making sure the debts are paid. In a case like this, who is responsible for paying bills in the household is often not taken into consideration. Because of this, there are many potential complications. For example, one spouse can run up credit, damaging the other’s credit score. This can happen regardless of whether a divorce agreement designates different debt obligations for each spouse.
A creditor is able to close a joint account if it is requested by one of the spouses. However, a creditor is not legally allowed to close a joint account purely because there has been an alteration in marital status.
Sometimes, it can help to not only look at the broad strokes in a divorce, but also the minutia, the little complexities can play a big part. Skilled attorneys are available to help divorcing spouses make sense of these complexities. With the aid of a skilled attorney, it may be possible to ensure all complexities are considered, thereby paving the way for a smooth divorce
Source: FindLaw, “Credit and Divorce,” Accessed on Nov. 4, 2015