The divorce process involves more than determining where a person will live or who will get the family dog. It can be a very massive upheaval of one’s finances. Any Pennsylvania couple in the midst of a divorce may benefit by considering a few tips about how to deal with credit card accounts before they actually start anew.
If both parties are obligated on the credit card, both are legally obligated to keep up with the debt. If one party says they will assume payments, but they then neglect to do so, the other party can still be held accountable if their name remains on the account. The best way to deal with this scenario is to designate who will take ownership of what account and then transfer balances to new accounts to relieve the other party of responsibility. Another idea is to take any joint savings and simply pay off and close out any joint accounts.
It is advisable that anyone going through a divorce take the time to review their credit report. Credit ratings can impact a person’s ability to rent a new apartment or buy a car when they may need one the most. Keeping track of who has what account — and checking to make sure debt they are not responsible for is not ruining their credit — can save time and money.
The sheer volume of decisions and steps to take when pursuing a Pennsylvania divorce may seem overwhelming. Finances and credit accounts can be a big part of that transition. If both parties are open and clear about how to deal with those accounts, the process may be smoother overall.
Source: foxbusiness.com, “Debt and Divorce: 5 Steps to Make a Clean Credit Split”, Dawn Papandrea, July 14, 2014