 Ex-wife
keeps using joint credit card
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 Dear
Dr. Don,
I was recently divorced; and my wife assumed the credit card debt
and I assumed the house debt. She was supposed to close the account
that was in both of our names and open one in her name. Not only
has she left the credit card in my name, but she has run the debt
up to $10,000. What can I do?
-- Damien Divvy
 Dear
Damien,
Until you get your name off the account, you
share the responsibility for those purchases. The creditor wasn't
a party to the divorce proceedings and isn't held to the terms
of the divorce. With a $10,000 outstanding balance, it isn't likely
to agree to let your ex-wife take sole responsibility for this account.
Here's what the
FTC's Facts
for Consumers guide, Credit and Divorce, has to say about closing the credit
card account: By law, a creditor cannot close a joint account
because of a change in marital status, but can do so at the request of either
spouse. A creditor, however, does not have to change joint accounts to individual
accounts. The creditor can require you to reapply for credit on an individual
basis and then, based on your new application, extend or deny you credit. In the
case of a mortgage or home equity loan, a lender is likely to require refinancing
to remove a spouse from the obligation. Since she didn't change
the account, you'll have to take charge. Call the credit card provider and close
the account to new purchases. Follow that up with a certified letter taking the
same step. The account can't be closed until it is paid off, but you can limit
your responsibility for any additional purchases made after the credit card company
has received your letter and had the ability to act on it.
Until the account is closed with a zero balance, late
or missed payments will show up on your credit report and be reflected
in your credit score. If the credit card provider offers the ability
to track the account online it would be a good idea to check each
month to make sure that at least the minimum payment is made on
the account.
If your ex-wife doesn't pay off the balance, you may
have some legal recourse against her for not keeping with the terms
of the divorce. You'll have to talk to your attorney about whether
that is possible, or practical.
If you didn't refinance the mortgage, and her name
is on the note, your ex-wife is taking on some credit risk with
you, too. You both have obligations to keep up with these payments.
It'll be far easier to rebuild your lives if you don't have to rebuild
your credit, too.
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