Sisters Divorce

It should be written in her decree that he assumes responsibility for the "debt" on the cards listed. She needs to send a copy of the decree to the credit card company and ask that her name be taken off the liability for that card.

She can get a statement from them that she is not responsible for the debt in case she needs to apply for a loan before the debt "falls off" her credit report.

But she HAS to have the decree. If that was something they verbally agreed to and then settled "out of court" without a decree, she's screwed. If they agreed on everything, had their lawyers draw up a divorce decree listing out all the details, they signed it and then a lawyer "walked it through" for the judge to sign.... she should be fine.

She needs to consult her lawyer or accountant about this. If her name is on the card, it can ruin her credit and/or they can come after her about it. She needs to KNOW her rights regarding that debt and exactly how his increasing debts affect her if the cards are still in her name. She cannot assume.

Here's something else she needs to watch out for - him opening accounts after the divorce because he has her SSN. She should run her credit report and that of their children regularly. She should also know her rights (the FTC has a whole site on fair debt collection) in the event he stops paying on this or any other debt. We have gotten calls from creditors looking for my DH's ex's ex as well as my long gone ex-stepfather. They try to be intimidating, but that's why she needs to know her rights. Data mining will link her to him for years to come.

First of all, yes, this will definitely come back and haunt her as long as her name is on the cards. She can't get her name off the cards as long as there a balance due! Even tho it was agreed he would be responsible for the debt, if her name is on the card, she is still responsible even if he stops paying.

She needs to talk to her lawyer and see what can be done. And make sure this is the last thing remaining that is "joint."

If I were her, in the meantime, she should call the credit card company and have them do something. They could probably cancel the card; just not the debt.

Good luck!

Yes, they will show up on her credit. She will need to call the credit card companies to find out what she needs to do. It may be as simple as sending them a copy of the divorce decree showing that she is not responsible for them. However, that may be too easy. Really, she is the one that needs to handle this. I know its hard when you are going thru a divorce because everything is so overwhelming. It seems like she has good support from you and her parents, but really, she has to handle it. Good luck.

Creditors do not have to respect divorce decrees. Yes she is responsible for the debt until her name is removed. All he has to do is get her name removed. So long as he qualifies for the debt on just his income they will do that.

What is written in her divorce decree will not affect the legal nature of the contracts she has with any creditors. She will have to contact each credit card company to negotiate what she can do at this point. Some of the companies might be willing to negotiate on the debt based on the date of her divorce but I wouldn't hold my breath. The creditors are going to want their money and she is half responsible for paying it back. The creditors are not going to turn her lose from these obligations easily. Basically she is still legally liable for all joint accounts and the debts assumed therein. Credit cards, auto loans, home loans and other debts are awarded in a divorce decree but it is sadly a meaningless thing as my husband learned the hard way in his own divorce. Ideally she should have gotten her name off of these accounts before the divorce. Good luck to her and your family.

Oh, she needs to remove him from any jointly held bank and savings accounts if she has not done so already. It would be awful to go down to the bank for money only to discover the funds have been drawn by her now ex.

I counsel people about their debt situations, and your friend's issue is very common.

If she is simply an authorized user on his account, then her name can be removed at his reqeust.

If the account is Joint, she can't simply remove her name. The balance has to be paid in full, then the account closed. The account can also be closed with a balance to prevent further charges, but her name will remain on it. The account will stay in her credit history. in either case, so I hope he keeps up on payments for the sake of her credit rating.

You are correct that she is still liable with the (joint) credit cards. If he doesn't pay, they will come after her, and she in turn will have to take her ex to claims court to recover the funds.