There are times when one of the spouses in a divorce situation end up with damaged credit due to the actions of the other spouse. What can be done about credit scores that have plummeted and negative remarks on a credit report? Attorneys need to be able to effectively present a case for economic damages when the damage is to their credit so that an award can be granted for credit reputation injury.
Such an injury usually is the result of negligence or willful bad behavior of their spouse in the form of late payments or no payments on joint credit obligations.
It is important to keep track of your credit score. In the initial stages of a divorce, know your credit score and provide that information to your attorney. During the pendency of the case provide copies of any delinquency notices, notices from your credit card companies increasing the interest rates, and credit denial letters. All of this will be essential in proving the injury to your credit.
When there is marital debt that remains after the divorce is final, the parties remain jointly responsible until the debt is paid. In situations where the divorce decree requires the Husband to pay the marital debt and he does not, collection action will ensue against both the Husband and the Wife – even though the divorce decree states otherwise. Unless the parties pay off their joint debts and close the joint accounts, even though they are divorced they remain jointly liable as if they were still married. If you cannot pay off and close an account prior to the divorce being entered, the only way to terminate joint liability is with an agreement of the creditor. The creditor is not a party to the divorce so they are not bound by who the court has determined is responsible for the debt.