Deciding to part ways can be an overwhelming time. Whether you're considering a separation, moving away or filing for divorce, it's important that you give your credit special attention. Your credit can have a significant impact on your ability to start this new chapter of your life with the resources you need.

First, it's important to understand the differences between joint and individual credit accounts:

• Joint accounts - If you have joint accounts, then both you and your spouse are responsible for the debt. Simply agreeing that one person will take over certain payments doesn't change that. Your spouse & you both need to follow through with that. Additionally, a divorce agreement that outlines who is responsible for which debt won't release either spouse from responsibility for joint accounts. As far as the creditor is concerned, it granted credit to both of you and you are both responsible for paying off the debt regardless.
   

• Individual accounts - These are accounts in your name only. As long as your spouse isn't an authorized user on the card, this is your private account. Especially as you go through a major life transition, it's important to make sure you keep your balances reasonable and pay every payment on time. If you find it difficult to make the minimum payment on one income, contact your creditor immediately and explain the circumstances. Often, creditors are willing to work with you as you make a life transition.

Additionally, divorces can take several months, sometimes years to finalize it; so it's a good idea to use that time to make sure your credit is in the best shape possible. Here are some suggestions from individuals who have gone through this transition:
 

        It's important to note that creditors can't close joint accounts because of a change in marital status, but can do so if asked. However, that account does not necessarily become an individual account. The creditor can require you to reapply for credit as an individual, and determine whether to extend you credit based on your new application. In the case of a mortgage, lenders usually require that you refinance in order to release a spouse from responsibility.

Note: This article is provided for general guidance and information. It is not intended as, nor should it be construed to be, legal, financial or other professional advice. Please consult with your attorney or financial advisor to discuss any legal or financial issues involved with credit decisions.

Sources: For credit counseling, the nonprofit National Foundation for Consumer Credit (NFCC). The NFCC offers free or low-cost debt counseling, financial education, budgeting assistance, and other financial services for consumers. To locate an office nearby, you can check the NFCC web site at www.nfcc.org or call toll-free 1-800-388-2227 for 24-hour automated office listings.