For Best Law - Part 2

Divorce: Tips to Get Through and Beat the Stress

Posted on Saturday, April 17th, 2010 at 1:34 pm in Lawyer UK by admin

Going through a divorce can leave you angry, in grief and filled with mixed emotions. In other words, it can be a time of intense stress.

During this period you may feel like your life is falling apart. However, the end of marriage can be the beginning of personal growth – after you get your stress under control.

To help you get your life back on track, experts recommend working on yourself from the inside out.

For example, studies show that taking an all-natural supplement, like Vital StressX can help the body’s natural defenses fight against the emotional wear and tear of a divorce, such as lack of sleep. Made by CyberWize.com, Vital StressX contains a unique combination of seven herbs, called “adaptogens,” that help your body regulate cortisol, the “stress hormone.”

“By taking Vital StressX each day, you’ll increase your body’s tolerance to stressful conditions, helping you become balanced and active once more,” said Dr. Robert D’Amico, an osteopathic specialist in Tarpon Springs, Fla.

In addition, CyberWize.com offers the following stress-relieving tips to help you get through your divorce.

* Write a letter to your ex-spouse. Getting your feelings out of your system is a healthy way to start recovering from anger, resentment and other emotions. But after you’re finished writing the letter, don’t send it. Rip up the note and throw it away along with your sorrows.

* Seek counseling. Discussing the failed relationship with a professional can help you identify what went wrong and figure out what you need to do to recover and learn from the experience. Also, it can help you share your deepest feelings in a safe, secure environment where you won’t be judged.

* Sweat it out. Exercising regularly does more than keep you fit. It also releases endorphins and is a great outlet for anger.

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Divorce and Lawyers

Posted on Thursday, April 15th, 2010 at 3:26 pm in Criminal Law by admin

Do I need a lawyer?

Check out the following circumstances to make sure whether you need to have a lawyer or not.

You and your spouse have been wed for at least 5 years
You and your spouse have kids.
Either you or your spouse is the breadwinner while the other may have difficulty getting on his/her own two feet financially speaking, once the divorce is finalized.
You or your spouse has come upon inheritance while married to one another.
Either you or your spouse is in debt.

Where can I get a divorce lawyer?

There are a many ways to get a divorce lawyer. Also try asking your marriage counselor or therapist for a referral. Of course you may ask your relatives or friends as well. Other lawyers can recommend those attorneys which specialize in divorce also.

It is also possible if you may even go straight to the courthouse to check out if a particular divorce lawyer strikes your fancy. No matter where you look, may it be in the yellow pages or in directories on-line, you should assess their credentials.

Meeting a lawyer for consultation

After finding a promising lawyer, the next step would be to meet him/her for consultation. If he/she is hard to reach then this may be a sign that you may have a hard time getting in contact with him/her once you hire him/her as your divorce lawyer. Find out how much he/she may charge for consultation. What exactly is his/her specialization? Its important that he/she specializes in divorce, for you to have the best representation. You wouldnt want a gynecologist dealing with your heart disease would you? Of course youd seek the help of a cardiologist and with legal matters it goes the same. Seek the help of a divorce attorney for divorce concerns.

What you ought to know after consultation with a divorce lawyer

The first time you meet with a divorce lawyer may be one of the few times that you are the one who gets to do most of the asking. Make the most of it. Find out everything you need to know in order to make the right choice of attorney. After speaking with a lawyer, make sure youve discussed the following matters:

Length of practice
Case specialization
Divorce trial experience
Experience in negotiation for settlements
Familiarity with divorce mediators
Custody dispute experience
Familiarity with tax issues of divorce
Familiarity with your particular situation/context
Projected period of time for your case
Projected outcome for your case
Schedule and methods of contacting him/her
Fee (Including specifics, like if travel time is included)
Manner of billing

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Bankruptcy Law: Some Important Facts

Posted on Monday, April 12th, 2010 at 3:46 pm in Legal Advice by admin

As applying for loans, credit cards and other forms of credit are easier to come by, so are the bankruptcy rates in the United States. In a ten year period, between 1994 and 2004, bankruptcy rates in the United States nearly doubled. The governments reaction was to take a closer look at reasons parties were filing for bankruptcy, new laws were instated to ensure that individuals and businesses had valid reasons for applying for bankruptcy.

One of the primary laws regarding bankruptcy that was passed in the United States in 2004 is the Bankruptcy Abuse Prevention and Consumer Protection Act. This law just went into effect in October 2005, but has already caused quite a stir in the financial and bankruptcy law arenas. Besides making it more difficult to qualify for Chapter 7 bankruptcy, or complete bankruptcy, the law imposes stricter rules and budgets on Chapter 13 debtors.

A major change the law makes throughout the United States is the need for debtors to have filed tax returns for four years in a row before qualifying for bankruptcy. As well, dischargeable debts, or those debts where personal liability is taken away by the court system, is more difficult to come by. The Act requires that debtors prove good reason for dischargeable debt and is even requiring more debtors to take responsibility with non-dischargeable debt budgets.

As far as the two major types of bankruptcy laws are concerned, Chapter 13 bankruptcy is that which allows the debtor to keep some assets upon proving only limited debt and a steady income. This bankruptcy is excellent for those debtors who have gotten themselves into major financial difficulty but still have means of paying for some assets. The court will set up a repayment schedule and budget that allows for full repayment of mortgages or cars within three to five years.

If repayment is simply not an option, the bankruptcy law requires that a debtor will file for Chapter 7 bankruptcy. This is often referred to as complete liquidation of assets, except for exempt items. Exempt items in a bankruptcy hearing are determined by the court and are usually items that are a necessity, such as a car or work related items. As well, the courts will distribute debts into two categories: non-dischargeable and dischargeable debt.

Non-dischargeable debts also fall into two categories: non-dischargeable due to wrongful conduct on the debtor and non-dischargeable due to public policy. Wrongful misconduct by the debtor could mean theft or laundering money while public policy could include child support payment or court related judgments.

Keep in mind that in either type of bankruptcy, an individual is almost always required to still pay for taxes, student loans, alimony, child support or court related fees. This is the place where many bankrupt parties are misled in the Chapter 7 bankruptcy, as it is often referred to as “a fresh start”. While the court can set up payment plans to help the debtor repay public policy debts, even Chapter 7 debtors will still be required to make payments.

Another major point regarding bankruptcy law is that a bankruptcy will stay on a credit report for approximately ten years. This will make it extremely difficult to become eligible for any type of credit, even a credit card, but especially for a car loan or a house mortgage. While some creditors will still offer limited credit to bankrupt individuals, the interest rates and finance charges are usually through the roof. This makes it even more difficult for debtors to get back on their feet.

Last but not least, keep in mind that bankruptcy law will require any co-signers to be responsible for debt payments. If mom or dad signed for a car loan when you were young and you still owe on that car, they are liable for payments. These friends or family members who were once doing you a favor may be brought into the bankruptcy law court proceedings, which can put a strain on friendships and family relations.

For specific bankruptcy law questions it is best to contact a bankruptcy attorney or legal aide in your county or state. Bankruptcy laws and proceedings may vary slightly from state to state, so be sure to make contacts in the state where you plan to file for bankruptcy.

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Group Legal plans benefits for employer and employee

Posted on Friday, April 9th, 2010 at 9:34 pm in Attorneys by admin

A properly developed group legal insurance plan can be the perfect
complement to any employers work life initiative. Considering that many
employees are nowadays increasingly swayed by benefit options when making
career decisions, Legal insurance is a viable product for many employers.

However, there is no single fit-for-all group legal plan for all
organizations. For a start, each organization has a distinct list of
requirements when contracting for legal insurance. A requirement built on
the premise of reduced administrative costs will require a different set
of legal services than requirements built on enhancing a benefits package
or protect against liability.
Legal plans also vary in what they offer: the quality of their customer
service, flexibility of plan design and finally the experience and
professional track record of their panel of attorneys.

In order to minimize the risk of poor service and plummeting employer
satisfaction, an employer should conduct both requirements analysis
amongst its employee base to cover for their difference needs, and a due
research to select the most appropriate legal plan to fit those
requirements based on experience, integrity and track record.

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Differences between Pre-Paid and Legal Plans

Posted on Friday, April 9th, 2010 at 6:50 am in Lawyer UK by admin

It is not uncommon to see the terms legal plans and pre-paid legal
services used interchangeably. While they share a lot of characteristics
in common, there are a number of differences you should be aware of.

Both of these terms refer to an arrangement whereby you pay a fixed monthly
or yearly fee in exchange for legal services. The idea behind them is to
save consumers on high legal fees whilst offering a valuable service.
Thats where the differences lie: what kind of service is offered and what
is covered. What are you entitled to in both schemes?

Pre-paid services cover for specific legal services: free phone
consultation and advice, drafting of simple wills and trusts, review of
sample contracts and writing of letters on your behalf. Legal services not
provided will get charged at regular attorney fees, but you may be eligible
for discounts.
Legal insurance, by contrast, works much like other insurance plans, like
health or car insurance. Although specific legal services are offered at
times, your insurance provider will typically offer a policy that covers
for all legal services. The policy will pay on behalf of you, the policy
holder, or reimburse all expenses, costs or fees that you pay for legal
services up to the policy limit. For instance, your policy might reimburse
any fees incurred in your court judgments or pay your bail money a
service not provided by most pre-paid legal plans.

Your legal insurance is also pegged to other insurance policies you may
already have. If you run into legal problems involving your other
insurance, then your legal insurance policy will protect you against loss
or liability. For instance, if you are involved in a car accident when your
auto-insurance has already run out and you are subsequently sued for
recovery of damages, you will be protected by a legal plan insurance.
The other difference between the two schemes is related to your choice of
attorney. In a pre-paid legal service, you get to choose from a restricted
number of the attorneys in the network. By contrast, a legal insurance plan
provides legal coverage regardless of attorney. You are free to set up
interviews with any number of attorneys and choose the ones you think will
provide the best service for your personal legal needs.

Finally, pre-paid legal plans are much more accessible to the general
public. Legal plans are harder to come by as only a limited number of
insurance companies offer such arrangements.

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Differences between Pre-Paid and Legal Plans

Posted on Thursday, April 8th, 2010 at 10:47 pm in Criminal Law by admin

Finally, pre-paid legal plans are much more accessible to the general
public. Legal plans are harder to come by as only a limited number of
insurance companies offer such arrangements.

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Copyright

Posted on Monday, April 5th, 2010 at 5:03 am in Lawyer UK by admin

Copyright is a legal fiction designed to protect the works of artists, inventors and innovators. In essence, it is a legal bar, allowing exclusivity for those who create works in the form of an intangible asset which can be sold or relinquished, and which expires upon a certain period of time. With the growth of the internet, and the creation of more and more content, the question of copyright is becoming increasingly more relevant, and one which more and more webmasters are considering to protect their own interests. Additionally, with the rise of the freelancer market, the issue of copyright is becoming a heated topic of debate for both buyers and sellers at every stage in the production chain, and the effects of not having the relevant rights could be potentially catastrophic. In this article, we’ll look at what exactly copyright is, and how it relates to the internet in content creation.

Copyright is an artificial concept that gives the creator of a work, or the person he sells the right to, the legal right to use or modify in whole or in part, and to call their own. It has a different meaning in most jurisdictions, however the basic principle is the same: the creator owns the original copyright to the work in question, and has the freedom to pass this on at will, usually in consideration for money. Where a creator is working on commission, copyright is designed to act as a lien in his favour, meaning that if he creates and passes on but does not receive payment, he can withhold copyright and sue for breach where applicable. Of course, he would also have remedies under the ordinary law of contract, but the grasp of copyright is a very powerful tool, which can even be used against the third party buyer from the original commissioner.

Copyright is designed as a tool to cover what is known as intellectual property. Committing intellectual thoughts and ideas to paper, or making them tangible is usually sufficient to give rise to the copyright protection, which usually lasts for a number of decades in preventing others from steeling ideas. This is primarily designed to encourage forward thinking and art, and can be a vital tool in protecting the financial interests of those responsible for some of the world’s most vital progressions. Consider the inventors of the seatbelt, Volvo. Volvo could have used their copyright to prevent other manufacturers from installing seat belts, and this would have been sufficient to protect any other manufacturer from doing so. Of course they waived their rights for the safety of the general public, which is also a possible consideration for the creator of something new and innovative.

Copyright is an exhaustible right, and it usually expires on a given date, after which all works enter the public domain. This means that those who create new products have sufficient time to capitalise on their idea before the world at large can join in. Unfortunately for many musicians, this means their artistic works can no longer make them money specifically, and can be used royalty free; a fact that has caused much uproar and unrest in recent years.

Copyright is a dynamic area of the law, and is particularly relevant to the internet. As more and more content of more and more varieties is created online, there comes a need to find protection in copyright law to prevent unscrupulous parties from using content without authorisation. In combating this, a number of international legal organisations have been established with a view to tackling copyright violation, and helping those without legal support to fight cases for the protection of their work. It is undoubtedly an area of law that is on the ascendancy, as lawyers worldwide strive to find a cohesive structure to online intellectual property law, and the protections online authors should be afforded for creating their works. At least within national boundaries, it is highly possible to rely on copyright laws to protect and govern material.

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Bailiffs & Council Tax – Know Your Legal Rights

Posted on Sunday, April 4th, 2010 at 3:13 pm in Legal Advice by admin

Many of us do not know how bailiffs work to collect arrears. Basically, bailiffs are private personnel hired by the local council to handle Council Tax and Poll Tax. Anything that they get from you is auctioned as a way of paying your existing debt. This process of taking your goods, selling them, and paying your debt is called “distraining” or “levying”.

Since October of 1998, the County Court ruled that bailiffs must carry a certificate with them as a proof that they have been hired by the local council. Any complain about a bailiff not following this order can be brought to the attention of the court immediately.

Since April of the same year, a process involving bailiffs and debts has also been at work. This process states that you, as a debtor, must get a letter from the Council which contains the details of your credits. The same notice would bear the warning that if ever you fail to pay your financial obligation within 14 days, bailiffs will be sent to your aid. You may contact a member of the local council within the period for your concerns. You can also make suggestions to the council about the most convenient payment scheme that you can afford. If the council approve of your suggestion, they will ask the bailiffs to stop calling you and save you extra fees in the long run.

DO I HAVE TO LET THE BAILIFFS IN?

One thing that you must know about bailiffs is that you do not have the responsibility to take them in whenever they come. In fact, you can choose not to let them inside your home. If the bailiffs have never been into your home, they have no right to come in at anytime of the day. It is also unlawful for them to break in.

As a form of precaution, avoid the following scenarios:

- Do not open your doors to the bailiffs. Once you entertain them, they will have the power to push past you. If they get inside, they will have the right to enter again and take more of your goods.
- Do not leave your doors and windows unlocked because bailiffs can easily take advantage of any kind of opening. As they cannot ask the police to help them break in, your carelessness is their only ticket.
- Do not fall to any kind of trap. Bailiffs can make several bluffs like asking to use the toilet or the telephone just so they can lure you towards letting them in.
- Do not leave your valuables lying around. Bailiffs can easily take away anything valuable that they lay their eyes and hands on. Make sure that your cars are always shielded from view.
- Do not make transactions inside your home. If you have a certain amount to pay the bailiffs out for your debt, do so but make sure that you transact outside. Do not forget to take a receipt as well.
- Do not sign anything that the bailiffs ask you to. The bailiffs do not have the right to make you sign any sort of document, whether it was left posted in your door or handed out to you personally.

THE BAILIFFS HAVE ALREADY BEEN INSIDE MY HOME

If you allowed the bailiffs go inside your home at once, you are in for a more serious situation. Once bailiffs are let inside, they will have the right to come back again. If you choose not to let them in the second time, they will have the right to break in. What you can do to repair this problem is to get in touch with your local council immediately or make the necessary arrangements with the bailiffs. You can ask your local councilor for help or you can devise a specific payment scheme that you can afford and present it to the bailiffs. If they agree on your terms, you can prevent them from coming back and take any more of your things. Also make sure that you take a receipt of your every payment to be on the safe side.

WHAT THINGS ARE THE BAILIFFS ALLOWED TO TAKE?

Most of your valuables can be legally taken by the bailiffs except for the following:
- Anything that was rented or hired.
- Items or equipments that are necessary for your personal and professional use.
- Your basic daily needs such as clothing, bedding, and furniture.

You will notice that exemptions are not really item specific. The bailiffs may have different interpretation of which items they can take legally or not. If you feel that what they have taken away should have been exempted, you can file an appropriate complaint in your local council.

CAN THE BAILIFFS TAKE THINGS WHICH ARE NOT MINE?

It has been clearly established by the law that the bailiffs can only take what are legally yours. This include items that you co-own with your partner. If the bailiffs attempt to take anything that you do not own, politely tell them about the item’s ownership by showing receipts or proofs of purchase that will indeed tell them that it is not yours. Also, the owner of the goods can make a sworn statement or a statutory declaration about the real ownership of the items.

Other things that bailiffs cannot take are the ones that are rented or hired. Make sure that you keep a copy of your agreement with the real owner so the bailiffs will not take them away.

WHAT IF I HIDE THINGS OR GIVE THEM AWAY?

It is legal to hide your valuables if the bailiffs have never been inside your home. Once they step in, however, they will list all the items they intend to take. If you try to hide any of those things elsewhere other than your home, you will be committing an offence that is punishable by the law. If you are able to keep the items discreetly out of sight, the bailiffs can rightfully search for them on visits.

BAILIFFS PROCEDURES

The good news is that bailiffs cannot break inside your home just like that. They are also covered by certain laws and procedures that they must adhere to including the following:
- Bailiffs must bring with them a written authorization or a certificate from the local council.
- Bailiffs must hand you a copy of the “Enforcement Regulations” which contain information on what they are only allowed to do.
- Bailiffs must also bring with them a statement of charges that they can take with each visit. They should never make additions to blow up your debts.
- Bailiffs must also bring with them a “Walking Possession” agreement duly signed by you. This agreement contains the list of items that they have warned to take right from their first visit.

HOW DO I STOP THE BAILIFFS?

The most effective measure to stop the bailiffs from taking away your things is to make an arrangement on how you can pay your debt. Devising an effective installment plan will be beneficial for you especially if the bailiffs have never been into your home. Offer only what you can afford to pay to prevent any form of misunderstanding to take place.

The bailiffs cannot send you to prison. If they fail to break into your home, their most appropriate action is to pass your debt back to the council. If this happens, it would be much easier to settle the problem. You better take this as a priority debt because if you do not act on it immediately, the council will find another way to recover the money. They can file an Attachment of Earnings Order, which will take out money from your earnings or other form of order that will summon you to pay your financial obligations dutifully.

In some instances, the council may agree to exempt your case from bringing it to the bailiffs’ attention. The council allow direct payment schemes for those who are on Income Support, Pension Credit, and Job Seekers’ Allowance. Better yet, ask the council whether they can take back your case from the bailiffs so you can deal with them directly. Your local councilor can help you make the deal with the council. Explain your reasons and whatever difficulty it will bring you in case the bailiffs break into your home and take your things to stand a chance for a consideration.

HOW DO I COMPLAIN?

There are Enforcement Regulations that the bailiffs must adhere to. However, the National Standards for Enforcement Agents issued by the Lord Chancellors Department is quite tricky. Although it provides specific guidelines on bailiffs’ behavior in carrying out their duties, mentioning these standards in your complaint may be or may not be beneficial to you. You can look out for the standards yourself through the Department for Constitutional Affairs website

(www.dca.gov.uk/enforcement/agents02.htm).

The law concerning the bailiffs is complex but you can start learning it through by reading the law yourself and trying to understand every bit of technicalities in it. Your personal effort, however, may not be sufficient. If you can, it would be best to get a legal advice on what you can do against what you feel is unlawful action of the bailiffs.

Since October 1998, the bailiffs need to act with a certificate at hand. This certificate to collect Council Tax must be granted by the court. Filing a complaint against the bailiffs can have their certificate withdrawn and their right to enter your house forfeited. To file a complaint, you can write a formal letter to the Court Manager so he can administer a hearing. Once the court find substance in your complaint, it can rule out to cancel the bailiffs’ certificate, order compensation as well as return of the surrendered goods. Some cases acted favorably to the complainants where their debts have been written off due to the bailiffs’ illegal acts. This is one of the reasons why you should not take your complaint sitting down. Once you discover an irregularity, you must rush to the Magistrates Court to file a complaint.

The bailiffs report directly to the council and it would be ideal to bring your case there. Once it receives your complaint, it must order the bailiffs to change their procedures. If this do not work, you can call the attention of your local councilor or your local government Ombudsman to look through your case.

BAILIFFS CHARGES

If the bailiffs are asking for excessive charges, you can use it as a case for complaint. You can make a written notice to the council telling them that what has been taken from you may be way too much. You can also seek advice from the County Court regarding the appropriate fines the bailiffs can charge you.

Your common sense and your knowledge on local processes can also be useful in determining what amount of fine is reasonable and what is not. If, for example, the bailiffs charged you 80 for attendance with a van and hiring a van costs only 40, you are obviously charged unfairly. When such circumstance takes place, you can instantly call the attention of the bailiffs. Warn them that you will take further action for your complaint to be recognized if they refuse to follow the regulated schedule.

Submit a written complaint to the council so they know how the bailiffs are illegally carrying out their duties. Other than that, you can also apply for a “Taxation” in the County Court. This kind of application will ask the court to look through your complaint within 12 months after which they should submit a decision whether the bailiffs charges have been excessive or not. If the court decides against you, you will be held liable for the bailiffs’ firm’s court costs. That’s why you must be careful in taking such action. Please remember, however, that making complaints is worth your every effort especially when you are loaded with evidences that will prove that the bailiffs stepped out of the line.

USEFUL LINKS

The Secretary
Association of Civil Enforcement Agencies
Kensington House
33 Imperial Square
Cheltenam
Glos
Tel: 01242 241456
Website: www.acea.org.uk

The Secretary
Enforcement Services Association (ENSAS) (formally The Certificated Bailiffs Association)
Ridgefield House
14 John Dalton Street
Manchester
M2 6JR
Tel: 0161 839 7225
Website: www.bailiffs.org.uk

Local Government Ombudsman (England)
Millbank Tower
Millbank
London SW1P 4QP
Advice Line: 0845 602 1983
Monday to Friday, 9.00 am – 4.30 pm
Website: www.lgo.org.uk
Note: There are a total of three local government Ombudsman offices for England. You may check whom to send a complaint by calling the Advice Line.

Local Government Ombudsman (Wales)
Derwen House Court Road Bridgend
CF31 1BN
Tel: 01656 661 325
Website: www.ombudsman-wales.org

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Forex Trading: The Most Common Flaws

Posted on Thursday, April 1st, 2010 at 9:41 pm in Attorneys by admin

Flaws due to multi indicators and due to the principle of confluence:

Many traders are very much attracted to the sophistication offered by the multi indicators and use them in their forex trading systems. Many of the confluence system indicators show the price movement and in no way adds any value to the trade. Due to this, the traders either end up over bought or over sold technical indicators like the stochastic, momentum indicators, candle stick chart pattern recognition, Bollinger band breaks out even neural networks which are supposed to be artificial intelligent systems. The technical indicators just show signals which are similar to buy or sell or hold, making the signal generated to be correct. Theoretically it sounds good but in reality to arrive at a conclusion might be difficult. As a result the traders are confused in making a right decision. They either enter too late or too early or remain still without being able to make a decision to enter the market. The major flaw is due to the use of useless trading system which does not serve the purpose to make profits, but confuses the traders and complicates the forex trading until the trader loses.

Another dangerous flaw found in forex trading is of an emotional nature interwoven into the process. It is fear and greed of the trader. A profitable forex trade can lead to exuberance and over joy, but this is the time when greed comes in and crosses the aspects of risk management. When a trader is hooked to winning, out of greed he over-rides all aspects to see more and more profits, only to see them crash to earth. They wait for the prices to regain, but in dismay may some time and with worst possible losses. This is the time when fear crops up and paralyses the trader not making him to open up any position. Hence while trading, the trader should not override the emotional side of trading, stick to discipline of the trade which can prevent them from committing the flaw of forex trading.

Another kind of flaw can happen when the trader is an unconcerned person or the one who is lazy, or with no drive to gain profits or feels the need to be profitable. These people would have entered into forex trading due to hearing it as an easy game. For them it is not a trade which involves skill, trade management, preparation and re-investment. It is a fun game for them, where loses do not make any difference to them. Such persons make a wrong footing, with a wrong objective.

Flaws in forex trading due to the inadequate knowledge of the trader:

Some of the losers start with good purpose in the trade. Even though they had gained some knowledge from here and there they might find it difficult to apply them practically in the trade. Inadequate knowledge might be the major flaw which stops them from achieving success.

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Credit and Divorce

Posted on Tuesday, March 30th, 2010 at 12:45 pm in Criminal Law by admin

Mary and Bill recently divorced. Their divorce decree stated that Bill would pay the balances on their three joint credit card accounts. Months later, after Bill neglected to pay off these accounts, all three creditors contacted Mary for payment. She referred them to the divorce decree, insisting that she was not responsible for the accounts. The creditors correctly stated that they were not parties to the decree and that Mary was still legally responsible for paying off the couple’s joint accounts. Mary later found out that the late payments appeared on her credit report.

If you’ve recently been through a divorce – or are contemplating one – you may want to look closely at issues involving credit. Understanding the different kinds of credit accounts opened during a marriage may help illuminate the potential benefits – and pitfalls – of each.

There are two types of credit accounts: individual and joint. You can permit authorized persons to use the account with either. When you apply for credit – whether a charge card or a mortgage loan – you’ll be asked to select one type.

Individual or Joint Account

Individual Account: Your income, assets, and credit history are considered by the creditor. Whether you are married or single, you alone are responsible for paying off the debt. The account will appear on your credit report, and may appear on the credit report of any “authorized” user. However, if you live in a community property state (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, or Wisconsin), you and your spouse may be responsible for debts incurred during the marriage, and the individual debts of one spouse may appear on the credit report of the other.

Advantages/Disadvantages: If you’re not employed outside the home, work part-time, or have a low-paying job, it may be difficult to demonstrate a strong financial picture without your spouse’s income. But if you open an account in your name and are responsible, no one can negatively affect your credit record.

Joint Account: Your income, financial assets, and credit history – and your spouse’s – are considerations for a joint account. No matter who handles the household bills, you and your spouse are responsible for seeing that debts are paid. A creditor who reports the credit history of a joint account to credit bureaus must report it in both names (if the account was opened after June 1, 1977).

Advantages/Disadvantages: An application combining the financial resources of two people may present a stronger case to a creditor who is granting a loan or credit card. But because two people applied together for the credit, each is responsible for the debt. This is true even if a divorce decree assigns separate debt obligations to each spouse. Former spouses who run up bills and don’t pay them can hurt their ex-partner’s credit histories on jointly-held accounts.

Account “Users”

If you open an individual account, you may authorize another person to use it. If you name your spouse as the authorized user, a creditor who reports the credit history to a credit bureau must report it in your spouse’s name as well as in your’s (if the account was opened after June 1, 1977). A creditor also may report the credit history in the name of any other authorized user.

Advantages/Disadvantages: User accounts often are opened for convenience. They benefit people who might not qualify for credit on their own, such as students or homemakers. While these people may use the account, you – not they – are contractually liable for paying the debt.

If You Divorce

If you’re considering divorce or separation, pay special attention to the status of your credit accounts. If you maintain joint accounts during this time, it’s important to make regular payments so your credit record won’t suffer. As long as there’s an outstanding balance on a joint account, you and your spouse are responsible for it.

If you divorce, you may want to close joint accounts or accounts in which your former spouse was an authorized user. Or ask the creditor to convert these accounts to individual accounts.

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.

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Divorce: Tips to Get Through and Beat the Stress

Divorce and Lawyers

Bankruptcy Law: Some Important Facts

Differences between Pre-Paid and Legal Plans

Differences between Pre-Paid and Legal Plans

Copyright

Bailiffs & Council Tax – Know Your Legal Rights

Forex Trading: The Most Common Flaws

Credit and Divorce

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