Family Issues

How to break the ties that bind

When one gets married, or has lived together as a couple for sometime, it is most likely that the couple has jointly applied for credit or joint financial commitments.
During divorce or separation, these accounts stay on unless changed.  They remain as long as the mortgage and loan remains.

But when the financial commitments are no longer joint, the ties can be removed.  This is not an automatic occurrence even if finances are sorted out and there is legal separation.  A process called “disassociation” will have to be worked out with the credit agency.

Update your records

If you remain idle, you will realize that within the next six years when you apply for credit, you will find out that your former partner’s credit history will be put into consideration, because you have not amended your records which shows that you still have a joint obligation.  Your partner’s poor credit rating, may have an effect on your ability to apply for a credit.

You may also discover that members of your former partner’s family or any new partner is connected with you because they have or had a similar surname or because you have shared a previous address.

Checking your joint finances is a way of removing connections with your ex-partner.  For starters, you can secure a copy of your file from the reference agency.

Make an arrangement with the lending company or any other companies concerned like the television rental, utility or mobile phone company, to amend the credit agreements. In most cases, this is not as easy as it should be.

Paying off one loan and removing another.  Signing over the mortgage in the other’s stead is an example.  Eventually, you will find out that you are indebted to each other.

Who is liable for what?

Despite complications, it has to be done.  Most lenders are familiar with such situations and will offer their help in sorting things out.  Discuss your new predicament with them.  It is to their best interest to ensure that loans remain active as well as who has the liability for such.

Once all financial links have been broken, the process of “disassociation” can be initiated by the credit reference agency and make the necessary moves to disjoint the file.

These agencies will likewise offer assistance in case you cannot break your joint financial commitments with your ex-partner, but feel potential lenders must be informed that you have separated.  In these kinds of situations, and while negotiating with your ex-partner, it is advisable to include a notice to your file discussing the situation.