What If Divorce Happens

Submitted By: Jeffrey Broobin

A couple recently divorced. Their Divorce Decree stated that the husband would pay the balances on their three joint credit card accounts. Months later, after he neglected to pay off these accounts, all three creditors contacted the wife 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 the wife was still legally responsible for paying off the couple's joint accounts. She later found out that the late payments appeared on her credit report.

You may want to look closely at issues involving credit if you've recently been through a divorce - or are contemplating one. Understanding the Different Kinds of credit accounts opened during a marriage may help show you 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 either an individual or a joint account.

Individual Account

The creditor considers your income, assets, and credit history. 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. If you live in a community property state (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, or Wisconsin) 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

The income, financial assets, and credit history of you and your spouse 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 rule continues to rule your credit score, 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, it will be reported in both of your names 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 yourself are contractually liable for paying the debt. If you are Thinking About Divorce, examine the status of your credit accounts, because if you maintain joint accounts during this time, it's important to make regular payments so your credit record won't suffer. Remember that if there's an Outstanding Balance on a joint account, you and your spouse are responsible for it. Therefore, if divorce, you may want to close joint accounts or accounts in which your former spouse was an authorized user.

You could also ask the creditor to Convert These Accountsto 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 also is not required to change joint accounts to individual accounts and could 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 Refinancingto remove a spouse from the obligation.

About the Author:

Jeffrey Broobin is a free-lance writer on family and finance issues; his main goal is to help people during their complicated period of life. Website: http://www.legalhelpmate.com Email: jeffreyb@legalhelper.ws

Select a divorce lawyer New York with care and caution

by Damyel Flower

A divorce is a painful occurrence where both the individuals involved end up losing something precious to them. People enter into the bond of marriage with many hopes and dreams for a future together and with the best of intentions to make it a success. However, certain unavoidable circumstances and irreconcilable differences may force them to part ways through a divorce. A time like this is emotionally and mentally disturbing for not only the couple but for their entire family as well. It can be especially painful if there are children involved as many other issues take priority in such a case. As it is an emotional and mentally disturbing time for the person involved and his or her family, it is quite natural that the individual will be unable to take logical decisions to fight a divorce case. In these circumstances it is best to hire the services of a divorce lawyer New York.

When you are fighting a divorce case it is best to hire the services of a competent divorce lawyer New York who is experienced in dealing with many such cases. The divorce lawyer New York will be accustomed to the nitty gritties and legal terms and conditions that are applicable to such cases as each state has a different law with regard to a divorce case. So the lawyer is best prepared to handle a divorce case on your behalf and help you get the most from a painful situation. If issues like child custody is also involved, then a divorce lawyer can find the ways and means to ensure the best provisions for your child as that is your main priority.

Divorce cases can turn ugly if both partners are not parting their ways amicably and often such is the case where financial assets are involved. A competent divorce lawyer New York can help you find out all that you deserve to get as your share and will help you claim such assets. Many couple do not go in for pre-nuptial agreements that could have taken care of all such financial divisions. Thus, the necessary intervention and expertise of a divorce lawyer is compulsory. However, before you hand over your case to any lawyer it is advisable to carry out your own reference check as trust is a vital criteria between any lawyer and client.

Some of the best ways to find a competent and reliable divorce lawyer New York is through the yellow pages or the internet. Also, another dependable option would be to get references from the lawyer's past clients for whom he has successfully handled other cases similar to yours. Once you have a lawyer of your choice and have discussed the monetary arrangements of fees and costs with him, trust him wholeheartedly. Let him know the complete details which are crucial to the case and will help the lawyer in getting a decision in your favor. So, no matter how painful the experience of divorce may be, a divorce lawyer can still help you emerge victorious and start life anew.

About the Author
Damyel Flower is an experienced divorce lawyer.He has successfully handled many divorce cases.He gives advice to clients who are looking for Art lawyer New York,Divorce lawyer New York,Best art lawyer,Divorce lawyer NYC.To hire services of a lawyer in New York and any legal advice visit us www.mtllp.com.