According to U.S. News & World Report, 66% of divorced people had shared debt with their ex-spouse. This can complicate financial situations as both parties are still liable for the debt even after divorce.
If you had joint accounts during your marriage, your ex-spouse’s information will remain on your credit report for up to 10 years after you pay off the balance and close the account. However, if you can’t pay the account in full, you have other options for eliminating shared accounts.
Read on to learn how to remove an ex-spouse from your credit report, plus tips for improving your credit post-divorce.
Key takeaways
Your ex-spouse’s name appears on your credit report because you took on shared debt during your marriage. When a couple gets a joint loan, both of the individuals’ names are listed on the loan agreement, and payment information appears on both credit reports. The responsibility of repaying the debt is equally shared between both individuals.
Examples of shared debt include:
There are a few different strategies for dealing with shared debt after a divorce and separating your credit from your ex-spouse.
Generally, you will need to close shared accounts in order to remove your ex-spouse from your credit report. If you leave the account open, you and your ex’s finances will continue to be linked, and your credit could get damaged if they miss a payment.
If you were using a credit card that earns rewards, remember to redeem your points before closing the account. Once joint credit cards are closed, notify your creditor that you’re going through a divorce and consider requesting individual cards.
As a final step, check that your credit report accurately reflects the closure. Note that after you close the account, it can take up to 10 years for the account to fall off your credit report.
If you cannot afford to pay the account in full to close it, another option is for you and your ex-spouse to both open new personal balance transfer credit cards. Then, you can divide up your debts and transfer the balance to your individual cards. Once the entire balance is transferred from the joint account, you can close it.
If your ex-spouse is an authorized user on a credit card account that you’re the primary cardholder of, you can call your issuer to have them removed. Once removed, they can no longer use the card to make purchases.
Alternatively, if you’re the authorized user and your ex-spouse is the primary cardholder, you can remove yourself as an authorized user. Typically, this doesn’t require any help from the primary cardholder, and you can call the credit card issuer’s customer service line to request your removal.
Divorce can affect your credit in more ways than one, often leading to less income, one-sided nonpayments, and lower credit limits—all of which can negatively impact your credit score. Luckily, you can take steps to rebuild your credit after divorce.
Here are a few ways to improve your credit score post-divorce:
You don’t have to let divorce get in the way of your financial goals. Removing your ex-spouse from your credit report is just the first step in getting your finances back on track. Get your free credit score today to get started.
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