Information about alimony agreements does not appear on credit reports. The reporting agencies are more interested in how responsible you are in paying your bills, and they also monitor any derogatory information about your financial status, such as judgments, liens, foreclosures, charge-offs and bankruptcies.
Disclosing Alimony
Disclosures about alimony arrangements are made by the consumer. When you fill out an application for credit, lenders by law are allowed to ask if you are obligated to make any alimony or child support payments. They are not allowed to ask if you are receiving alimony, or the amount, unless you are relying on that income to qualify for your loan or credit line.
Proving Your Income
Your lender will ask about your employment and income as part of the application process for credit. You'll be asked where you work, and how much your earn. You are also free to list additional income, such as alimony payments. It's up to the lenders to confirm that the information you provide is correct. For major loans, such as a home mortgage, lenders might request income tax returns, paycheck stubs, bank records and court documents.
Equal Credit Opportunity Act
The Equal Credit Opportunity Act (ECOA) offers consumers many protections. Among them, it ensures that lenders may not refuse reliable alimony payments as a legitimate source of income. However, the lender can ask you for proof that you have been receiving your alimony payments on a regular and consistent basis.
Protection for Spouses
The Federal Trade Commission recommends married couples establish credit in their own names, no matter who is considered the head of the household. This makes it easier for either spouse to continue on with a credit history in the event of a divorce or death.
Documentation
Be sure to maintain accurate records of your income from alimony. Make copies of checks or money orders from your ex-spouse. Some home mortgage applications require proof of income for the past two years, so be sure to hold on to your records.
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