Credit Accounts and Their Effect on Your Texas Divorce: Strategies and Considerations

When facing divorce in Texas, it’s common knowledge that community property laws govern property division. However, one aspect often overlooked is how debt, specifically credit accounts, can significantly impact your divorce proceedings. This blog post from the Law Office of Bryan Fagan, PLLC, delves into the complexities of credit accounts and divorce, providing insights, strategies, and essential information to help you make informed decisions.

Understanding Debt in Divorce

Debt plays a crucial role in divorce, and the types of debt accumulated during your marriage will influence how it’s divided between you and your spouse. Credit accounts fall into two main categories: individual and joint. Each type requires a different approach when addressing debt division in divorce.

1. Individual Credit Accounts:

Individual credit accounts consider only your income and credit history when determining creditworthiness. If you’re an authorized user on your spouse’s individual credit account, it will appear on your credit report, but the account holder remains your spouse. In Texas, a community property state, debts on individual accounts may become shared responsibilities in divorce if they appear on both spouses’ credit reports.

2. Joint Credit Accounts:

Joint credit accounts list both you and your spouse as account holders. Lenders consider both incomes, assets, debts, and credit histories when extending credit or determining loan terms. Responsibility for jointly held debt is shared between spouses. Any activity on these accounts, whether positive or negative, will appear on both spouses’ credit reports.

Clear and Concise Divorce Decree Language

When negotiating debt responsibilities in your Divorce Decree, it’s crucial to use clear and precise language. Vague or ambiguous terms can lead to disputes and difficulties in enforcing the decree. If you agree that your spouse should assume responsibility for specific debts, ensure the decree reflects this agreement accurately. Remember that creditors may not be bound by the divorce decree, so timely payments remain essential to safeguard your credit.

Closing Joint Credit Accounts

After finalizing your divorce, it’s essential to close joint credit accounts. While most financial transactions can be handled online, closing a credit account typically requires direct communication with the creditor. You can either call the creditor or send a written request to close the account, ensuring to request a final statement with a balance of $0. This extra step will prevent surprises like unexpected late fees down the line.

Confirmation of Closure

Even if your Divorce Decree mandates account closure, it’s your responsibility to contact the creditor, close the account with a zero balance, and obtain written confirmation of the closure’s success. This precaution ensures that your credit report accurately reflects the closed account, providing peace of mind regarding your financial status.

Upcoming Blog Post

In the next blog post, we’ll illustrate the concepts discussed today by presenting a hypothetical couple going through a divorce. By immersing yourself in their situation, you’ll gain a better understanding of the credit account handling process and its significance during divorce. If you have questions about divorce cases in Texas, don’t hesitate to reach out to the Law Office of Bryan Fagan, PLLC, for a free consultation with one of our experienced family law attorneys.


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  1. The effect of divorce on your credit
  2. Handling the issue of credit card debt during your divorce
  3. How are Credit Cards Handled in a Texas Divorce?
  4. How credit cards and debts are handled in a Texas Divorce
  5. Debts, Credit Cards and Divorce in Texas
  6. What Happens to Marital Debt During a Texas Divorce?
  7. Know-How Property and Debts are Divided When Preparing for Your Texas Divorce
  8. What Happens to Marital Debt During a Texas Divorce?
  9. Dividing Property in a Texas Divorce – The Just and Right Division
  10. Why is Separate Property Important and How to Keep it Separate in a Texas Divorce?
  11. What Wikipedia Can’t Tell you About Texas Divorce and Marital Property Division
  12. Texas Divorce Property Division Enforcement
  13. Separate Property in a Texas Divorce?
  14. Does it Matter Whose Name is on Title or Deed of Property in a Divorce in Texas?

Law Office of Bryan Fagan, PLLC | Houston, Texas Divorce Lawyers

The Law Office of Bryan Fagan, PLLC, routinely handles matters that affect children and families. If you have questions regarding divorce, it’s essential to speak with one of our Houston, TX, Divorce Lawyers right away to protect your rights.

Our divorce lawyers in Houston, TX, are skilled at listening to your goals during this trying process and developing a strategy to meet those goals. Contact the Law Office of Bryan Fagan, PLLC by calling (281) 810-9760 or submit your contact information in our online form. The Law Office of Bryan Fagan, PLLC, handles Divorce cases in Houston, Texas, Cypress, Klein, Humble, Kingwood, Tomball, The Woodlands, the FM 1960 area, or surrounding areas, including Harris County, Montgomery County, Liberty County, Chambers County, Galveston County, Brazoria County, Fort Bend County, and Waller County.

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At the Law Office of Bryan Fagan, PLLC, the firm wants to get to know your case before they commit to work with you. They offer all potential clients a no-obligation, free consultation where you can discuss your case under the client-attorney privilege. This means that everything you say will be kept private and the firm will respectfully advise you at no charge. You can learn more about Texas divorce law and get a good idea of how you want to proceed with your case.

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