I am not going to talk about divorce in general. Each couple has to decide for themselves if divorce is the best solution for their particular circumstances. I am going to speak about the possible ramifications of divorce as to how it relates to credit issues. Many people are under the impression that once a divorce is final and the divorce decree states which person will be responsible for certain debts that it relieves the other of all obligations of those debts. This is simply not a true statement!
Any joint accounts opened remain the responsibility of both parties. In community property states, both parties may be responsible for all individual debts opened by either party during the marriage. If you are listed as an "account user" on an individual account, the creditor must report the account in both names.
It is important that, in order to protect yourself, and each other, from a potentially damaging situation later on down the line that both of you look closely at the debt that you have incurred. Divorce is an unfortunate reality for some. If in fact it is happening to you it is necessary for you, and your spouse, to realistically look at the complete financial picture and realize the ramifications of the open credit that you and your spouse currently have.
The absolute best case scenario is that there is either very little debt or you have enough money to pay off all debt and close all joint accounts - this rarely happens but it is the best option.
If the first solution is not feasible, then perhaps the divorce is amicable and you can agree to close joint accounts (to prevent future charging) and you each have the means to pay your assigned (agreed upon) debts on a timely basis. The danger is obvious here, but you must also understand that as long as there is a balance on those accounts most creditors will include those debts in your debt ratio calculation which may effect your ability to obtain new credit. Even if you cannot agree there are more options. Either party on a joint account can close the account (normally in writing) to prevent future charges (very smart thing to do). You can also ASK the creditor to remove the other party, or yourself, from the account. Keep in mind that they do not have to comply with your request. I cannot offer any particular assistance in this matter. The fact is some creditors will comply while others will not. Your best bet is to make the request in writing and if they agree obtain something in writing from them.
Lastly, if each spouse has debts to pay provided by the divorce decree, both may have every intention of paying on a timely basis. You must remember that things can happen that alter the ability for that person to pay. If that happens and you have not taken any remedies to protect yourself, then you can expect the creditors to pursue you for payment.
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