Separating or divorcing how to avoid credit card credit line nightmares?
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SEPARATING OR DIVORCING? HOW TO AVOID CREDIT CARD / CREDIT LINE NIGHTMARES
If you are separating or divorcing, it is vital to ensure that you have clearly removed yourself from mutual obligations or joint accounts on both credit lines as well as credit cards
Many couples will have credit cards where both people are listed. Any debts incurred on a credit card, will be the obligation of both parties
It is not unheard of for an ex spouse to run up expenses on mutual credit cards, or remove sums of money from credit lines, obligating the other spouse to (At least) half the debt.
While separation agreements can and often do list who is responsible for what, financial institutions typically will disregard these as the agreement you made initially was them guaranteeing the debts incurred. They simply want their money, and won’t care who has to pay it.
Even if the separation agreement clearly points out your spouse is responsible for the debt, if he or she fails to do so, your lending institution / bank will still pursue you. You will have to in turn pursue your spouse in the courts.
Make sure to either pay off all debts before entering the separation / divorce, or remove yourself from the account directly with the lending institution / bank itself
As an extra level of assurance, have the lending institution / bank provide a document from them indicating you are no longer liable for any debts on said credit card / credit line
