Credit Repair After Divorce or Separation
Your ex left you with more than just heartbreak — they left you with their debt. We help Australians untangle credit file damage from separation and start fresh financially.
What Our Clients Say
Real reviews from real Australians who fixed their credit with us
Your Fresh Start Begins With Expert Help
Elisa Rothschild, Principal Lawyer & Director of Australian Credit Solutions, explains how we help Australians remove defaults and rebuild their credit. With 12+ years experience and ASIC licensing (ACL 532003), you're in expert hands.
Your Ex Left You With More Than Just Heartbreak
The marriage is over. The paperwork is signed. You've moved out, moved on, started rebuilding your life.
But then you apply for a car loan. Or a rental application. Or maybe just a credit card to help with moving expenses.
Rejected.
You pull your credit report, and there it is — the financial wreckage of your failed relationship:
You kept your side of the separation agreement. You paid what you were supposed to pay. But your ex? They walked away from every financial obligation — and because your name was on those accounts, you're being punished for their mistakes.
Here's what most Australians don't realize: You're not stuck with your ex-partner's credit damage. Much of it can be challenged, corrected, or removed.
How Divorce & Separation Destroy Your Credit File
Relationship breakdowns are financial minefields when it comes to credit. Here's how it typically unfolds:
The Joint Account Nightmare
During the relationship, you likely had:
- Joint home loan or mortgage
- Joint credit cards
- Joint personal loans (car, renovation, wedding)
- Joint utility accounts (electricity, gas, water)
- Shared rental lease or phone/internet plans
When you separate, both names remain on these accounts until formally closed or refinanced.
What Goes Wrong After Separation:
Scenario 1: Your Ex Stops Paying
You agree your ex will keep the house and pay the mortgage. They promise. The family court orders it.
Then they miss payments. The lender doesn't care about your separation agreement — both credit files get destroyed.
Scenario 2: Your Ex Maxes Out Joint Credit
You had a joint credit card during the marriage. You agreed to close it post-separation.
Your ex "forgets" to close it. Instead, they max it out ($15,000), stop making payments, and the card goes into default — your credit score drops 150-250 points.
Scenario 3: Hidden Debts You Didn't Know Existed
Your ex took out a personal loan in both names without telling you (forged your signature or you signed "just to help" without understanding).
You find out during separation when debt collectors start calling.
Scenario 4: Utility Bills from Hell
You moved out. Your ex stayed in the house. The electricity, gas, and water were in both names.
Your ex stops paying. Bills go to collections. Defaults get listed on both credit files — yours included.
The brutal reality: Even if you weren't responsible, even if you had nothing to do with the debt, if your name is on the account, you're liable in the eyes of credit bureaus and lenders.
The Legal Reality of Joint Debts in Australia
Family Court Orders Don't Erase Credit Liability
Common misconception: "The family court ordered my ex to pay the joint debts, so I'm not responsible."
Legal reality: Family court orders are between you and your ex. Lenders aren't bound by them.
If your ex doesn't pay a joint debt despite a court order, the lender can still pursue you, list defaults on your file, and take legal action against you.
Joint Liability Means 100% Liability Each
On joint debts, both parties are liable for 100% of the debt — not 50/50.
- If your ex defaults on a $30,000 joint loan, you owe the full $30,000
- The lender can chase you for the entire amount
- Your credit file gets destroyed even if you never saw a cent of that money
Joint Accounts Don't Automatically Close
Separating doesn't automatically close joint accounts or remove your name from joint loans.
You must actively:
- Refinance loans into one name only
- Close joint credit cards
- Transfer utilities to sole names
- Document everything in writing
Not sure what joint debts are affecting your credit? We can check for free.
Rachel's Post-Separation Credit Rescue
The Problem
Rachel, a 41-year-old teacher from Melbourne, separated from her husband of 14 years in mid-2022. It was amicable — they agreed he'd keep the house and refinance the mortgage into his name.
By late 2023, Rachel had saved a deposit, had stable income ($89k/year), and was ready to buy her own unit. She applied for a home loan.
Rejected within 48 hours.
She pulled her credit report and discovered:
- $4,200 default on joint credit card (card she thought was closed)
- $8,600 default on joint personal loan (ex was supposed to pay it off)
- Three months of late payment codes on the old mortgage
- Credit score: 418 (far below the 620+ needed)
The Solution
We identified multiple grounds for action:
Westpac credit card default ($4,200): Debt was incurred after separation — Rachel never used the card. Disputed on fraud/unauthorized use grounds.
Personal loan default ($8,600): Family court assigned debt to ex. Challenged with court orders and evidence.
Mortgage late payment codes: Rachel had vacated 10 months before late payments occurred. Disputed based on no control over payments.
The Outcome
Credit card default completely removed. Personal loan default removed from 2 bureaus. All late payment codes removed.
Three months later, Rachel reapplied for a home loan — approved in 12 days.
$380,000 mortgage for a 2-bedroom unit in Brunswick at 6.24% interest.
Rachel is now a homeowner — debt-free from her ex's mistakes.
Going through separation and need credit help?
How Credit Repair Works After Divorce or Separation
Credit repair post-separation is complex because you're dealing with joint liability laws, creditor policies, and family court orders. Here's our proven process:
Post-Separation Credit Audit
We analyze your file looking for:
- Debts incurred by ex after separation (strong removal grounds)
- Joint accounts your ex was ordered to pay
- Defaults on accounts you had no access to
- Late payments on property you vacated
- Debts you never consented to (fraud cases)
Legal Documentation Gathering
We help you compile:
- Separation agreement (proving responsibility)
- Family court orders (debt allocation)
- Email/text evidence (agreements, proof of ex's responsibility)
- Proof of vacating property
- Bank statements (proving you didn't benefit)
Strategic Dispute & Removal
We lodge disputes citing Privacy Act Section 20, Credit Reporting Code Section 21, and family law evidence.
High-priority removals: Debts incurred after separation, accounts your ex exclusively controlled, debts assigned to ex in court orders.
Direct Creditor Negotiation
For debts that can't be removed, we negotiate:
- Debt forgiveness or reduction
- Payment plans to bring accounts current
- Removal of default in exchange for payment
- Refinancing joint loans to remove your name
Credit Score Rebuilding
Once major issues are resolved:
- Open credit in your name only
- Improve payment history on all current bills
- Close remaining joint accounts
- Build savings and emergency fund
Typical timeline: 60-120 days for major removals, 6-12 months for full credit recovery.
Common Post-Separation Credit Issues
1. Joint Credit Cards Maxed Out by Ex
The Problem: Ex maxes out joint credit card, stops paying, card goes into default.
How We Fix It: Dispute if charges were made after separation (fraud grounds), provide separation agreement proving ex's responsibility, negotiate removal in exchange for partial payment.
Success Rate: High if charges were post-separation
2. Ex Stops Paying Mortgage
The Problem: Your name is still on the mortgage. Ex stops paying. Late payment codes and default appear on your file.
How We Fix It: Dispute late codes if you vacated property and had no control, provide family court orders assigning mortgage to ex.
Success Rate: Moderate (depends on documentation)
3. Hidden Joint Debts
The Problem: Ex took out loans in both names without your knowledge. You discover when defaults appear.
How We Fix It: Report to bank as potential fraud, file police report if signature was forged, dispute based on lack of consent.
Success Rate: High if you can prove lack of consent
4. Utility Defaults from Old Property
The Problem: Ex stayed in house after separation, stopped paying utilities. Defaults listed on your file.
How We Fix It: Provide proof you vacated, show utilities were solely in ex's control, dispute on grounds of unfair reporting.
Success Rate: Very High (utility companies are often flexible)
How Long Does Post-Divorce Credit Repair Take?
Simple Cases
1-2 joint defaults, clear separation agreement
- Dispute and removal: 30-60 days
- Score recovery: 2-4 months
- Ready for credit applications: 3-6 months
Moderate Cases
3-5 joint debts, some documentation gaps
- Dispute and removal: 60-90 days
- Score recovery: 4-8 months
- Ready for credit applications: 6-12 months
Complex Cases
Multiple defaults, financial abuse, uncooperative ex
- Dispute and removal: 90-180 days
- Score recovery: 8-18 months
- Ready for credit applications: 12-24 months
Key factor: The sooner you act after separation, the easier the repair. Waiting years makes evidence collection harder.
How to Protect Your Credit DURING Separation
If you're currently going through separation, take these steps immediately:
Step 1: Document Everything
- Screenshot all text/email agreements about debt responsibility
- Save copies of separation agreements and court orders
- Document your last day in joint property
- Keep bank statements showing no benefit from joint debts
Step 2: Close Joint Accounts ASAP
- Close joint credit cards (or remove your name)
- Transfer utilities to one name only
- Close joint bank accounts
- Cancel joint phone/internet plans
Step 3: Monitor Your Credit File
- Pull reports from Equifax, Experian, Illion every 3-6 months
- Set up credit monitoring alerts
- Watch for new accounts opened without consent
Step 4: Refinance or Sell Joint Property
- Refinance mortgage into one name only
- If neither can afford it alone, sell and split
- Don't delay — every month increases risk
Step 5: Get Legal Protections
- Include debt responsibility clauses in separation agreements
- Get statutory declarations from ex acknowledging debts
- Include indemnification clauses
Bottom line: The faster you sever financial ties, the less your ex can damage your credit.
Fix Your Credit After Separation — Free Assessment in 60 Seconds
Find out if we can remove your ex-partner's credit file damage. No judgment. No pressure.
Common Questions
Can my ex-partner's debts affect my credit score?
Can I remove my ex-partner from my credit file?
Will family court orders help remove credit file defaults?
What if my ex forged my signature on a loan?
How long after separation can I apply for credit?
Can I be held responsible for debts I didn't know about?
What if my ex won't cooperate with refinancing or closing accounts?
Should I pay off my ex's debts to protect my credit?
Your Financial Freedom From Your Ex Starts Here
Ending a relationship is hard enough. You shouldn't have to carry the financial wreckage for years afterward. Your relationship ended. Your financial connection to them should too.
Your ex's debts don't have to be your burden. The joint accounts can be challenged. The defaults can be removed. Your credit score can recover.
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