Why didn't your divorce attorney tell you that..?!?!
The phone call almost always starts with, "My ex was made responsible for that in the divorce decree..."
Every week, it seems, I have the same conversation for someone else who has been down the road of divorce and is now struggling to get back on their feet financially.
Yes, the divorce decree awarded the car/house/time share/whatever to the other person. Yes, the divorce decree made the other person responsible for the payments on said piece of property. But that document does not replace the contract that you signed at the time of purchase. That is exactly why your scores dropped when your ex stopped paying for that account.
So, what do you do..? How do you protect yourself..? And how do you maintain a civil relationship with your ex..?
First and foremost, when dividing the assets, you need to take a look at your credit report (you can get one at creditgecko) and identify the items that you own jointly. SELL all of those assets, pay off the debt and split the equity. If one or the other wants to keep the asset or is tasked with paying for the asset you must insist on refinancing the debt so that you are no longer a signer.
This goes both ways...if you want to keep the house/car/whatever, you must refinance under your name without the ex on the account. This will make your life and future relationships so much easier. No one ever wants to explain to their new spouse that they can't buy there dream home because they are still on a delinquent home loan with their ex-spouse.
If you have questions, concerns or need guidance, call Omega Money Coach, 214-733-8336.