Separating assets and divvying up debt are part of securing a divorce. While it may be difficult to keep your credit health in mind while going through such an emotionally turbulent time, it’s important to remember that divorce doesn’t dissolve joint debt, such as a mortgage.
Even after your divorce is final, you will still be responsible for a joint mortgage and the debt will appear on your credit report. Your divorce decree will likely indicate which spouse gets to keep the house, but that doesn’t automatically free the other party from the joint mortgage. Your divorce decree doesn’t change contracts with creditors. You’ll both have to agree on a course of action to remove one spouse from the mortgage contract. Common options include:
Whatever you both decide to do, you’ll have to work together to take care of your mortgage obligations, as they can affect credit reports and scores for both of you. Keep communication open and honest with your mortgage company, and do notify them of the divorce decree.
Joint accounts and debts will appear on both individual’s credit reports, even after the marriage is dissolved. When a joint account continues after a marriage ends, one party may find his or her credit affected by the credit behaviors of the ex-spouse. It’s important to address all joint credit accounts and debts when two people divorce, including a mortgage.