As a financial counselor, I have seen some incredibly difficult situations that people face as they deal with divorce. Sometimes it cannot easily be helped. Sometimes it is a deliberate and malicious attempt to cause further hardship to the ex-spouse. One ex may say “Horror Collectible. I might as well ruin her credit too!”
One particularly situation that I encountered involved a divorce settlement that gave one spouse the car that they had been driving, even though it was in the ex’s name. This is fairly common.
Rather than honor the terms of the agreement, this individual decided to stop making payments and allowed the car to be repossessed. Additionally, another car was purchased prior to the repossession.
The only recourse that you have when something like this occurs is to make the payments yourself. Pursuing a legal response could work, but you will likely incur hits to your credit prior to reaching a resolution. Therefore, you must ensure that all payments are made on debts where your name is attached to the account.
Another situation can result when your ex-spouse is expected to make the credit card payments but fails to do so. If your name is on the accounts, then your credit will suffer. Furthermore, debt collectors will hound you by phone and mail to collect on the debt. They may even call your employer or family members.
Such an outcome can be embarrassing and can cause horror collectibles wholesale for your job or strain family relations. It can also affect your financial options moving forward.
Repercussions
If you want to apply for a new job, your prospective employer may pass you over due to damaged credit. You might have trouble meeting credit requirements when you apply for a mortgage. You may even have trouble renting an apartment if your credit is affected by your ex’s nonpayment of your account.
Credit is so important that it can affect everything from loan rates to employment. In most states, even car insurance premiums can depend on your credit score.
Take Control
The bottom line is that you must proactively try to stay in control of the accounts for which creditors hold you responsible. That way, you have the final word on your credit.
It is OK and even preferred if your ex-spouse must provide for repayment of that debt. Just make sure that you are in control and can ensure the account does not fall delinquent.
Kenneth Long began his public service with nonprofit organizations in 2001. He has since conducted workshops teaching other nonprofit executives how to integrate cre
dit counseling with volunteer tax preparation programs. Long is a graduate of the University of North Carolina at Chapel Hill and received his Certificate in Nonprofit Management from Duke University.
If you want to apply for a new job, your prospective employer may pass you over due to damaged credit. You might have trouble meeting credit requirements when you apply for a mortgage. You may even have trouble renting an apartment if your credit is affected by your ex’s nonpayment of your account.
Credit is so important that it can affect everything from loan rates to employment. In most states, even car insurance premiums can depend on your credit score.
Take Control
The bottom line is that you must proactively try to stay in control of the accounts for which creditors hold you responsible. That way, you have the final word on your credit.
