Thursday, October 28, 2010

Should You Remain An Authorized User After Divorce?

It’s common for couples to share credit card accounts, with one spouse opening the account and adding the other as an authorized user. This is especially useful when one spouse has a good credit history, and the other needs to build their credit.

But things get tricky when marriages go bad. For one thing, if you’re still an authorized user on your ex’s credit card, their spending habits can harm your credit score. For another, keeping you as an authorized user is a good way for your ex to see what you’re spending money on.

So what should you do? Experts recommend calling the credit card companies and asking to be removed as an authorized user. Remember, you’re responsible for at least half of the debt incurred on your credit cards during the marriage. If you stay on the accounts following your divorce, you can also be held liable for half of the debt incurred after the marriage ended.

If you’re receiving alimony or child support in the form of credit card privileges, it might be a better idea to set up automatic deposits or old-fashioned checks instead. If your ex defaults on the credit cards, your support - and your credit score - will suffer.

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