Court Decrees and Account Responsiblity Part 1

The limitations of a Court decree regarding your credit:

So you have hammered out who gets what now that the two of you are going to live apart. You have probably had an attorney helping you negotiate and you've definitley had the attorney draw up all the legal documents. Finally, the court issues its judicial ruling stating something like this: you will get the house, the "Ex" will pay you enough to meet your financial obligations, and so on. Assets are allocated, it is entered into both the court record and the public record. Debts are also divided; one will pay the department store charges, the other will make the car payments, and so on.

All of this has force of law, the power of the court in all of its authority. What does that mean to your credit future?

The creditors with whom you and your "Ex" have signed contracts and agreements are not affected by the court allocation and decree. The court ruling applies only to the two of you: You and the "Ex" are still bound by the contract(s) you signed before the court ruling.

(Continued in Part 2)