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Credit acounts have impact on divorce proceeding

When it comes to getting divorced, two of the biggest areas of conflict between two spouses have to do with the family home and child custody. However, another particularly important area to consider during a divorce proceeding in Montana is credit. Understanding the various types of credit accounts that a couple may open while they are married might help to illuminate the possible benefits of each one.

The two kinds of accounts opened during a marriage are an individual account and a joint account. With an individual account, a creditor will consider an individual spouse's credit history, income and assets. This spouse alone assumes the responsibility of paying off any debt associated with this account. This account will appear on his or her credit report in addition to possibly appearing on the report of any other authorized user. The benefit of this type of account is that a spouse cannot affect one's credit record using this account.

A joint account is an account that both spouses share. They must use both of their credit histories, incomes and financial assets for such an account. Both parties are also responsible for paying the debt tied to the account. An advantage of a joint account is that the spouses may find it easier to receive a credit card or loan if they submit information on both of their financial resources. However, the negative is that both parties have to pay off the debt, even if just one of the parties accrued a large amount of debt in an effort to get back at the other party during their divorce proceeding.

Dealing with assets and debt in Montana can be tricky and stressful during divorce. However, failing to be educated about the process for dividing assets and debt in this state can have costly consequences long term. An attorney can help to ensure that assets and debts are divided in a fair manner for one's sake during this type of family law proceeding.

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

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