Going through a divorce brings about all kinds of changes. For many, it's painful. For others, it's about new beginnings. Whatever your special circumstances, it's important to know and understand how a divorce affects your credit file.
Whether you're starting out on your own and need to establish credit, moving to or buying a new home, or are now the primary bill payer, it's critical for you to be familiar with the information on your credit report. This is an important time for you to check your three bureau report from Confidential Credit to see all the information and to acquaint yourself with everything-;good or bad-;that might be in your file.

First and foremost, you should know that a divorce decree does not absolve you from your bills. You are still obligated to repay the joint debts you and your ex-spouse incurred while married. In fact, a divorce decree has no impact whatsoever on outstanding debts that you still have. This applies even if a divorce judge directs your ex-spouse to pay a bill and then he or she is unable to fulfill this obligation. It is then your responsibility to pay the debt you two entered into jointly.

In addition, should your ex-spouse be delinquent in paying a joint bill, the creditor has every right to report that negative information about you to a credit bureau. If your ex-spouse doesn't pay at all, the creditor can ask you to repay the debt and can even take legal action against you for unsettled accounts.

If you divorce, you should consider closing joint accounts you and your ex-spouse had and begin to develop credit independently. You may want to follow some of the suggestions outlined in Tips for Improving Your Credit.

Before the divorce is finalized, both you and your spouse should look at all your debts. Decide who will be responsible for paying off which ones. Try to come to as equitable a solution as possible. Remember, both of your credit files will be affected by any negative information that is reported, now and in the future.

If you need further assistance, seek the advice of a credit counseling organization such as Consumer Credit Counselors at the National Foundation for Consumer Credit (NFCC). Call their toll-free number at: 1-800-388-2227 to find the location closest to where you live. More extreme measures may call for the help of a divorce mediator or attorney. The Academy of Family Mediators, American Bar Association or Legal Aid office in your area can provide information or referrals.

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