It happens every day; marriages end and the financial consequences can be the most stressful problems to deal with that seem never ending. The ill effects of having joint accounts with negative information can affect credit long after the divorce is over. Being able to dig out of divorce-induced debt or rebuild bad credit can take months or years. When planning to divorce, pay attention to joint credit accounts like a mortgage, home equity loan, and credit cards. Ask creditors to close joint accounts and try to reopen accounts under your name only. Joint credit accounts are the responsibility of both spouses. It does not matter if a divorce decree says that one spouse is responsible for paying off the joint account. Creditors do not obey divorce agreements. It would be up to one of the account holders to make sure the other spouse fulfills their obligations under the decree. That may be almost impossible to do.

Credit will suffer when joint accounts are not paid on time every month. When a mad ex charges on joint accounts and refuses to pay the balance, both parties will suffer the ill effects on credit reports and it could cause rejections when seeking other credit or loans. After a divorce or before the divorce is final, it can be helpful to establish your own individual credit. Use the tips below to try building your own credit history:

*Have a steady work record.

*Pay all bills on time or payoff bills.

*Open your own checking account and do not bounce checks.

*Make regular deposits to a savings account.

*Apply for your own credit cards.

*Apply for a small loan to try to establish credit, and repay it on time.

*Apply for prepaid cards that report to major credit agencies, if you can't get approved for unsecured cards.

There are individual and joint accounts. Whenever consumers apply for credit, they are asked if they want an individual or joint account. An individual account means the lender will consider only that individual's income, assets, and credit history. When approved for an individual account, only that account holder is responsible for paying off the debt-even if they are married. The account will appear on the account holder's credit report. It can also appear on the credit report of any authorized user on the account. It is important to make sure you establish a strong credit history by making all payments on time. Having an individual account whether or not a person is married can be a good way to establish and build good credit history. There is no worry that an account holder will max out the credit card and not help pay off the balance. Don't let divorce ruin good credit. Payoff joint accounts as soon as possible so they can be closed. This can eliminate the possibility of abuse from an angry ex spouse.

It is important to protect yourself from credit difficulties as a result of divorce. One step is to notify credit report agencies when there is a legal separation or divorce. Get a copy of your credit report when it is done and be sure to continue to monitor reports often. When there is a name change, notify creditors. It is like getting married and changing your name. When changing your name due to a being divorced, be sure to update all existing creditors so your account can be updated. This can help make sure joint credit history doesn't get interrupted. List your married name as an alias on future new credit applications, again so credit history is represented.

Close all joint credit card accounts once current balances are paid in full. Sometimes creditors will convert joint accounts to individual accounts as well; in other cases, you may have to close accounts and then re-apply as an individual. Sometimes it is best to apply for your own individual credit card before a divorce is final. For mortgages, a lender is likely to require refinancing to remove an ex-spouse from the obligation.

If joint accounts are maintained, it is important to make regular payments on time. One problem with keeping joint accounts is that there is a danger that one account holder will abuse the account. By maintaining joint accounts between separation and the finalization of a divorce is so credit records will not suffer. Monitor mail to make sure a bitter ex is not intercepting any important documents. Talk to a lawyer about credit matters and bills. Try to work out arrangements about debt payments. Even though a court may rule for one spouse to payoff certain debts, debtors can pursue all names on an account and they do not care what a court ruled.