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Credit accounts important to consider during divorce

Getting divorced in Arizona can be messy because this legal process involves untangling not just hearts but also finances. One of the biggest causes of conflict during divorce is property division. However, dealing with credit is also an important consideration during this type of family law proceeding.

In many marriages, couples decide to open joint accounts as well as individual accounts. With joint accounts, they can use their financial resources together to get a loan or a credit card. With an individual account, just one spouse can use his or her income, credit history and assets to obtain a credit card or loan.

During divorce, paying attention to the statuses of one's credit accounts is essential. If one spouse decides to run up a joint credit card during the divorce proceeding, the other spouse will end up being responsible for this debt as well. It may be helpful to close these joint accounts or even individual accounts where a future ex is an authorized user so as to avoid this issue. Creditors may also be able to convert these types of accounts into individual accounts.

The divorce process can understandably be challenging to navigate in Arizona, especially for those couples who have been married for a length of time and thus have many assets and debts that have to be split. However, if the two parties can see eye to eye, they may be able to address their property and debt without having to go to trial. Otherwise, they will have to take their issues before a judge so that the judge can make the final decisions regarding them for the couple.

Source: findlaw.com, "Credit and Divorce", Accessed on July 27, 2017

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