Could My Ex-Wife Use My Credit?

Your ex-wife cannot legally apply for credit under your name, but since you probably opened a few accounts with her, she might damage your credit or increase your financial obligations. Even if you have nothing to do with some charges, you could owe money due to community property laws. Thus, you may need a lawyer to sort out which expenses you and your ex jointly owe.

Identification

Your ex-wife cannot apply for credit under your name; using another person's information on a credit application is illegal and called file segregation. However, your ex-wife can use joint accounts, such as credit cards and a mortgage. When you put your name on an account with a spouse, you agreed to pay the bill even if a judge gives the bill to only one of you.

Community Property

Some states assign debt to both spouses regardless of the type accounts they hold. In a community property state, spouses jointly own any debt incurred during the marriage even if they use individual accounts. However, a judge can assign debt to one party, such as if a spouse were to sneak off to a casino and rack up thousands of dollars in gambling debt, usually called a "hold harmless" or "indemnity" clause. Although community property states stop assigning debt to both spouses after a judge signs the divorce papers to end the marriage, community property might extend to your assets long after your marriage, such as contributions to your 401(k) retirement plan during the marriage.

Preparation for Divorce

Experian recommends monitoring your credit during the divorce to know which accounts creditors say you must pay. You must pay joint accounts even when you dispute the validity of a debt or include them in a divorce proceeding. Missing payments damages both of your credit histories. If you anticipate a divorce, try to settle accounts before an argument arises. You might not be able to remove your spouse from some accounts, such as a mortgage, unless you refinance, or pay off the loan with a new contract, and the spouse agrees to selling the property.

Tip

You should consult a divorce attorney to help you figure out which charges were made by your ex-wife. You might need to ask a judge to order your ex-wife to furnish credit card statements so you can determine which charges were made after the judge signed the divorce papers. You also can ask the judge to reaffirm that you do not have to pay debt which your ex incurred after the judge signed the divorce decree.