Joint Accounts<\/h2>\n
As long as a joint account stays open with both names on it, both parties are legally responsible for it, including responsibility for any payments of bills and subscriptions.<\/p>\n
If you break up with your partner or spouse and agreed they will make these payments and they fail to, you will also be held responsible for the missed payments.<\/p>\n
Therefore, it is important that you close any shared accounts, or convert them into individual accounts. When divorcing, you will have to sort out the division of assets before doing this, which you can use a divorce mediator or solicitor to help with.<\/p>\n
When you do close any joint accounts, make sure you make note of any direct deposits so that you can contact the parties involved to change the transactions to your account.<\/p>\n
What is a Financial Association?<\/h2>\n
If you have joint finances or a joint credit account with another person, you are financially associated.<\/p>\n
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Financial association is not bound to marriage or cohabitation. Marrying someone or living with someone does not automatically make you financially associated. Because of this, when a relationship or marriage ends, the financial association does not automatically end with it.<\/p>\n
Financial Associations and your Credit Report<\/h2>\n
Financial associations can have a big impact on your finances. This is because lenders can take into account the credit reports of your financial associations as well as yours. Any negative information against your financial associations\u2019 names can therefore hurt your credit applications.<\/p>\n
Financial associations will stay on your credit report indefinitely unless you request for them to be removed. If you break-up with someone or get divorced, your credit report won\u2019t automatically update itself and remove your ex as a financial associate.<\/p>\n
It\u2019s important to note that financial associations cannot harm your credit score. Your credit score is personal and belongs completely to you to reflect your own creditworthiness. So, financial associations cannot affect your credit score itself, just the outcome of any credit applications you make.<\/p>\n
Once you remove someone as a financial associate, their credit history doesn\u2019t have a permanent mark on your finances where they\u2019ve been able to lower your credit score.<\/p>\n
Out with the Old and in with the New<\/h2>\n
Check all of your accounts even if you think they are solely in your name. If your ex is listed as an authorised user, ring the relevant account provider to remove them.<\/p>\n