Divorce and Your Credit: Consider the Pitfalls before Co-Signing a Loan
It is natural for married couples to do almost everything together. After all, marriage is a partnership and one that is built on trust. Because of that, few people would hesitate to enter into a joint contractual or financial arrangement with their spouse. And while that may be fine as long as the marriage lasts, it could prove troublesome if the union ends in divorce.
Consider the co-signed loan. By co-signing a loan, you become legally responsibility for the debt should the person holding the loan default. What happens in a divorce if your ex, who holds the loan, fails to pay? Is there any way you can force your ex to live up to his or her financial responsibility? Unfortunately, there is not. (1)