Divorce and Credit

Q: My husband and I are separating and virtually all of our accounts are joint accounts. I have no idea where even start trying to sort this out. Should we separate our accounts now, or will that be taken care of in the divorce? What do I tell our lenders?

A: If it looks like you'll be divorcing, you should definitely separate your accounts as soon as possible. In the divorce process, responsibility for paying off specific balances will be assigned to one or the other of you. But, since you both agreed to be liable for those accounts when you took them out, as far as the creditor is concerned, you'll both be responsible until those balances are paid off -- regardless of what the divorce decree says. That's why you don't want to keep those joint accounts open any longer than you have to. I've seen many a case where a vindictive spouse runs up new balances, skips town, and leaves the ex holding the bag.

Call your creditors, explain the situation, and ask to close the joint account and open a separate account in your name only. Then, immediately send a certified letter reiterating the conversation. If the person you speak with is uncooperative, work your way up the ladder until you find someone who will assist you. This is a pain, I know, but it's too important to ignore. Good-luck to you!

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