ABA Family Legal Guide

Consumer Credit

Credit Records

Credit and Divorce

Divorce can negatively affect people's credit for many reasons. It is important for people who are getting divorced to realize whether their various accounts are individual or joint accounts. If an account is an individual account, then only the individual is responsible for the debts of that account. However, if the account is joint, both persons listed on the account are responsible. This can prove costly when a spouse or ex-spouse refuses to act responsibly or does not pay his or her bills. In some states, called community property states (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin), both spouses may be responsible for all debts incurred during the marriage, even under individual accounts. Just as couples who are getting divorced usually negotiate a settlement in which they agree to divide their property, so dividing responsibility for debts is usually negotiated. If the couple can't agree on a settlement, the court will divide the assets and debts. The Federal Trade Commission has a short report entitled Credit and Divorce that is available online at www.ftc.gov/bcp/conline/pubs/ credit/divorce.htm.

1. What is a credit bureau?