Your spouse's effect on your credit

Today's question:

"I'm separated from my spouse, and I'm worried that my husband's bad spending habits will ruin my credit. Should I divorce him right away?"

Doesn't matter. Any co-signer, whether spouse, ex-spouse, or deadbeat brother, can ruin your credit through non-payment. If payments aren't made on time, your creditors don't care about your marital status. They'll just put the lateness on your credit report anyway.

So divorce won't help you at all. Be careful who you co-sign with.

On the other hand, in Florida (and other non-community-property states), you can't be liable for the debts you don't sign on, even if were married when the debt was created. So, once again, your marital status is irrelevant.