Divorce Decree and Your Credit – He Held Me Hostage!
“He Held Me Hostage!”
$30,000 in renovations to her house. Were they all about to be lost?
That was the question going through her head now.. She was in a state of despair. She had been working for months to fix up her house, including a total kitchen remodel.
Now she was being referred to me because her financial situation had changed and she needed to refinance her mortgage after her divorce, or she was going to loose it.
Her situation was unique to say the least, at least with resect to the seriousness and urgency of the situation. You see she had been divorced about six months ago and had been awarded the house, among other things. Her Ex had been ordered in the divorce decree to pay off the cards, which he had done, and remove her from those cards so they were only in his name.
The divorce was completed and as far as my client was concerned, she was well on her way into the next chapter of her life. She had some money in her pocket, her own home, and was giving it a face lift to celebrate the new direction of her life. She was finally happy, after a long time of challenge, or so she thought.
The problem was, that she was also supposed to get the house refinanced into just her name and had not yet.
Now she was facing a financial need to do so and for some unknown reason her credit had suddenly dropped and she needed help understanding why, and she she needed help fixing it and fast.
It didn’t take long to figure out what happened. Her Ex was supposed to pay of the credit cards and take her name off the accounts. He had paid them off but never took her name off them. Now, he had run up the balances to max and stopped paying on them. They were now 60 days past due.
At first she didn’t understand what that had to do with her. Then I explained to her that she was jointly on the cards and the high balances and new late history was crushing her credit and the only way to stop it would be to pay off the cards ASAP!
A divorce decree does not rule over your credit.
This story highlights an all too common problem that can arise after a divorce. A divorce decree that says your Ex is responsible for something, does not remove you from the original obligation. If you do not make sure the decree stipulations are completed before it is final, your credit could end up being held hostage.
Feel free to let me know if you have questions our comments and I hope you have a wonderfully blessed day!