Protect your credit after your divorce

It is not uncommon for parties to agree to allocate responsibility for marital debt as part of their divorce agreement, including credit cards, auto loans, tax debts, among others. However, while the divorce agreement is enforceable between the parties, creditors, including the IRS, do not recognize or honor individual divorce agreements. This means that while the nature of your marriage has changed, your joint debt remains the same. As such, while your ex-spouse may be responsible for paying a particular debt, your name and credit will remain tied to any jointly-titled debt. This means that if you or your ex-spouse fails to pay the debt as agreed, you may find yourself subject to additional penalties or negative marks on your credit report.

If you find yourself in a situation where an ex-spouse is failing to abide by his or her obligations to pay certain debts, you can file a motion to enforce litigant’s rights to ask the court to compel your ex-spouse’s cooperation. Further, if additional financial penalties have accrued due to your es-spouse’s failure to timely pay debts, the court can order that your ex-spouse will be solely responsible for those fees. However, because creditors are not subject to, or bound by, the terms of your divorce agreement, courts are unable to turn back negative impacts on an individual’s credit report.

At Lyons & Associates, P.C., we can help you protect your credit. Our attorneys can help you tackle post judgment enforcement issues. Here, at Lyons, we place a premium on personalized attention for your personal matters. For a private consultation, contact us by e-mail or call our office at 908-575-9777.