| |
| |
|
Divorce Information |
|
|
|
Credit and Divorce
Mary and Bill recently divorced. Their divorce decree stated that Bill would pay the balances on their three joint credit card accounts. Months later, after Bill neglected to pay off these accounts, all three creditors contacted Mary for payment. She referred them to the divorce decree, insisting that she was not responsible for the accounts. The creditors correctly stated that they were not parties to the decree and that Mary was still legally responsible for paying off the couple's joint accounts. Mary later found out that the late payments appeared on her credit report. If you've recently been through a divorce-or are contemplating one-you may want to look closely at issues involving credit. Understanding the different kinds of credit accounts opened during a marriage may help illuminate the potential benefits-and pitfalls-of each. There are two types of credit accounts: individual and joint. You can permit authorized persons to use the account with either. When you apply for credit-whether a charge card or a mortgage loan-you'll be asked to select one type. Individual or Joint Account Individual Account: Your income, assets, and credit history are considered by the creditor. Whether you are married or single, you alone are responsible for paying off the debt. The account will appear on your credit report, and may appear on the credit report of any "authorized" user. However, if you live in a community property state (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, or Wisconsin), you and your spouse may be responsible for debts incurred during the marriage, and the individual debts of one spouse may appear on the credit report of the other. Advantages/Disadvantages: If you're not employed outside the home, work part-time, or have a low-paying job, it may be difficult to demonstrate a strong financial picture without your spouse's income. But if you open an account in your name and are responsible, no one can negatively affect your credit record. Joint Account: Your income, financial assets, and credit history-and your spouse's-are considerations for a joint account. No matter who handles the household bills, you and your spouse are responsible for seeing that debts are paid. A creditor who reports the credit history of a joint account to credit bureaus must report it in both names (if the account was opened after June 1, 1977). Advantages/Disadvantages: An application combining the financial resources of two people may present a stronger case to a creditor who is granting a loan or credit card. But because two people applied together for the credit, each is responsible for the debt. This is true even if a divorce decree assigns separate debt obligations to each spouse. Former spouses who run up bills and don't pay them can hurt their ex-partner's credit histories on jointly-held accounts. Account "Users" If you open an individual account, you may authorize another person to use it. If you name your spouse as the authorized user, a creditor who reports the credit history to a credit bureau must report it in your spouse's name as well as in yours (if the account was opened after June 1, 1977). A creditor also may report the credit history in the name of any other authorized user. Advantages/Disadvantages: User accounts often are opened for convenience. They benefit people who might not qualify for credit on their own, such as students or homemakers. While these people may use the account, you-not they-are contractually liable for paying the debt. If You Divorce If you're considering divorce or separation, pay special attention to the status of your credit accounts. If you maintain joint accounts during this time, it's important to make regular payments so your credit record won't suffer. As long as there's an outstanding balance on a joint account, you and your spouse are responsible for it. If you divorce, you may want to close joint accounts or accounts in which your former spouse was an authorized user. Or ask the creditor to convert these accounts to individual accounts. By law, a creditor cannot close a joint account because of a change in marital status, but can do so at the request of either spouse. A creditor, however, does not have to change joint accounts to individual accounts. The creditor can require you to reapply for credit on an individual basis and then, based on your new application, extend or deny you credit. In the case of a mortgage or home equity loan, a lender is likely to require refinancing to remove a spouse from the obligation. For More Information If you need additional help during this time of financial stress, please call Cindy Morus at 541-387-2995. She's been through it, too. Cindy S. Morus (www.phelps-creek.com) is a Certified Financial Recovery Counselor specializing in showing women and their families how to achieve financial well-being and peace of mind. She is also a Certified Credit Report Reviewer and Get Clients NOW!? licensee. Contact her at 541-387-2995 or cmorus@phelps-creek.com She is also the publisher and editor of "Financial Fitness", an internet gazette dedicated to helping people improve their financial fitness no matter what decisions were made in the past. Attention Ezine editors/Site owners: Feel free to reprint this article in its entirety in your ezine or website as long as you leave all links in place, do not alter the content and include our resource box as listed above. If you do use the material please send us a note (cmorus@phelps-creek.com) so we can take a look. Thanks.
MORE RESOURCES: Warning: set_time_limit() [function.set-time-limit]: Cannot set time limit in safe mode in /mounted-storage/home75b/sub003/sc43227-PEOJ/ipcallcard.com/inc/rss.inc on line 8
Holiday Season Amplifies Hurt of Separation and Divorce: Economic ... - International Business Times
Divorce - Google News |
|
|
|
RELATED ARTICLES
Commitment Being marriage means being fully committed to your husband as to the Lord. Look at Ephesians 5:22 it says Wives, submit to your husbands as to the Lord. Reasons You Arent Starting the Decision Making Process About Whether To Get a Divorce Or... Stay MarriedAlong with any tough decision comes reluctance, especially when that decision involves an actual process and might potentially involve emotional pain or anguish. Deciding whether or not to get a divorce or stay married can be a frightening time for most people, even if they know deep inside themselves that they have to actually make a decision, one way or another. 10 Ways to Keep Divorce Lawyers From Ruining Your Life Everyone has heard the story (from friends, co-workers, and family members) of the divorce from hell; the one that grinds on for years, costs untold thousands of dollars, and frustratingly plods its way through the court system. It costs people not only their marriage, but often their children, their savings, and their emotional well-being, as well. Divorce--How the Legal System Works Against You If there were no legal system, no lawyers and no courts, divorce would still be difficult and it would still take time to go through it. Divorce is at least a major crossroad in your life, maybe even a full-blown life crisis. Child Support: 5 Key Things Every Parent Should Know There is no magic solution to getting issues surrounding child support resolved. Most parents know that when dealing with the bureaucracy tied to the child support system persistence, persistence, persistence is the key that opens the door. Tax & Financial Impacts of Divorce: 10 Mistakes to Avoid Divorce is something no one hopes will happen to them when they get married. Unfortunately, almost half of all marriages end in divorce. 3 Major Divorce Parenting Mistakes And Learn How To Avoid Them What 3 major divorce parenting mistakes that surely lead to unhappy, unhealthy and unsuccessful children? Parents know these for your children seek.1. Divorce and Uncle Sam: Top 10 Things You Should Know When Filing Your Taxes 1. What is my filing status? (Married, Single, Head of Household) Marital standing at year end determines your filing status for the entire year. Hire Divorce Lawyer or Use Online Divorce Forms When do you need to hire a family law attorney and when is it okay to just use an online divorce form website to save a little money? This article will provide a few pointers to help you decide whether to do it yourself or retain a divorce lawyer.What Does it Mean to Use an Online Divorce Form Website?Essentially, using an online form website in your divorce case means that you will represent yourself and act as your own lawyer. Houston Divorce Lawyer - West Houston Attorney Answers Common Questions About Mediation If you are reading this, then you are probably either thinking of filing for divorce -- or have a feeling that your spouse may be filing for divorce -- whether you want to separate or not.One of the common questions that an individual going through the divorce process asks is "What is a Divorce Mediation?"Mediation is a process which allows both you and your spouse to maintain control over your destiny and the terms of your divorce settlement. Divorce Roadmap: The Route Around the Legal System Let's look at how a divorce case works so you can see what you face and how you can beat the legal system. The legal divorce process is similar in all states, but there are two common sets of terms. Surviving Life After Divorce After divorce, the most important thing you can do is to move forward sensibly. Here are ten steps to help you on your way back to a fulfilling life. Top 5 To Dos Before Saying "I Do" 1. DO allow yourself enough time to make one of your biggest life-altering decisions. Dating Tips for Divorced and Widowed Moms Dating is tough for just about everybody, but it's even tougher for people who are divorced and widowed. Along with the fears of being "out of practice," there are often children's feelings to consider. Is Your Marriage Problem Severe Enough To Warrant Getting A Divorce? Having a marriage problem can be agonizing especially if you're trying to do all you can to make your marriage work. Depending on how your marriage was prior to thinking that you had a marriage problem, you could be in for a hurtful time if you don't take a step back and look at your marriage problem from a "helicopter" viewpoint. How To Identify What The Question Should I Get a Divorce? Means To You Deciding about whether you should get a divorce or not is an agonizing experience to go through. If you are asking yourself "should I get a divorce?", you've been thinking about your relationship's state for a while or an isolated incident (an example is an extramarital affair) that occurred was so terrible, that you want to just chuck it all and start over with a new life!If you have been asking yourself "should I get a divorce?" for any length of time, you should figure out what is making you feel that way if you haven't already. The Job of a Divorce Attorney Marriage is a very solemn and serious chapter on any person's life. However, due to personal reasons, a couple may decide to call everything off and file a divorce. Divorce--How to Beat the System Of course you want to get your Judgment--that's the goal of your legal divorce--but you don't want to go through the adversarial legal system to get it. You don't want to get all tangled up with lawyers and courts, because the system is designed to work against you. Divorce Makes Us Stronger My friends call me the "Divorce Poster Child".At the age of 20 I was married, and by 22 I had our first child. Healing Dysfunctional Families In a recent article entitled "Some Evidence On How We Are Spiritually Connected" I reported on a case study that revealed how individuals who share common traumatic memories can help each other release the trauma at a distance employing a new tool called the Mind Resonance Process(TM). In this article I will elaborate some of the potential applications of such a result as well as its far reaching implications.
|
| home | site map |
| © 2006 |
