Debts you share with your soon-to-be ex-spouse may become part of your negotiation discussions and divorce decree. As noted by GoBankingRates.com, your post-divorce credit score could decrease based on how many joint credit card accounts you opened while married.
When you close joint accounts, the credit reporting bureaus remove your ex-spouse from your report. Your credit score then reflects your individual spending and payment activities. If you established credit based on your ex-spouse’s history, divorce may present an opportunity to open your own credit card accounts.
Who pays joint debts, and how may I build my credit?
Under the Texas Family Code, divorcing couples divide their debts along with their assets. You may discuss splitting up the balances left on your joint credit cards. If your joint bank accounts still contain funds, you and your spouse may agree to use them to pay off shared credit card debts.
According to Experian.com, both owners of joint credit card accounts must agree to close them. Some card issuers, however, may only close accounts with zero balances. Applying for your own credit card may allow you to request a balance transfer from your joint credit card account. By making on-time payments each month, you could increase your individual credit score.
How may I end up with other shared debts?
If you have a joint car or personal loans, you may need to discuss splitting them. The individual who takes ownership of a car, for example, may agree to continue making the payments. By taking over a car loan, you may preserve good credit when sending on-time payments each month.
Agreements to take control of a shared debt may become part of your divorce decree. Depending on how you wish to establish credit, you may negotiate taking those debts that could help you improve your personal score.