How many of you have gone through a divorce? How many of you pulled a credit report after your divorce?
I’d like to share my story, and some things you can do to protect yourself and maintain your financial independence.
May is my celebration month for many reasons, one of them being my divorce (after 40 years of marriage). And this year I decided to get the free copy of my credit report from all three credit report agencies before freezing my credit.
Was I shocked to find on one of the three credit reports that I was still the “authorized user” on a credit card of my ex’s with a significant credit limit. What does this mean? Theoretically, I was liable for any unpaid balance on this credit card and it could affect my credit score and my pocket book!
Now I coach women before, during, and after divorce on their finances, and I always encourage them to run a credit report, have credit cards in their name alone, and write to take themselves off any joint credit cards. Why? So they aren’t legally liable for purchases made after they are taken off the cards.
Does this affect your credit score? Yes, but right now it’s more important to protect yourself from an angry spouse going on a shopping spree and you having to pay for it. (This also happened to me and I had to take him to court to get him to pay for his purchases!)
And I did this, but one card was under the radar and didn’t show up on all three credit reporting agencies!
Side note. There are three credit reporting agencies and you can get your free copy from each one to review it for accuracy.
So three years after my divorce (I’ll be celebrating May 23rd if you’d like to join me) I found a “sleeper” credit card on which I was still an authorized user.
Shocked? Absolutely! I immediately wrote a letter (you HAVE to do this in writing) requesting my name be taken off the credit card and included a copy of the divorce decree.
Why did I go to such effort? Because my ex could have gone shopping to the tune of $20,000 and I could have been liable for any unpaid balance! What a dirty (expensive) little surprise that would have been!
Whether you’re going through a divorce or not, make sure you:
- get your free credit report annually,
- check it for accuracy,
- decide if you want to freeze your credit.
If you’re considering a divorce, or going through one, or just got yours finalized and trying to get your finances together, schedule your free 20 minute money chat so I can help you make the best financial decisions moving forward.
If you’d like to continue the money conversation in a judgment-free group of women, join my private Facebook group Women Talk Finances, where any money question is a good one.