Kim Finkle, MBA, Financial Advisor Having a conflict with your co-parent or partner? - Start Neutral Mediation

In this post, we will try answering the following questions.

• Is it legal to run a credit check on your spouse during a divorce even if you are still married?
• What if you suspect that your soon-to-be-ex of hiding assets?
• Is it legal to run a credit check on your spouse's small business during a divorce?
• How to stop your ex-spouse from accessing your credit report?

 

Is it legal to run a credit check on your spouse during a divorce even if you are still married?

No, it is not OK to run a credit check on your spouse during a divorce. Since you will be getting access to your spouse's credit history without their consent, you will violate federal laws. You must have a "permissible purpose" under federal law (Ref: 15 U.S. Code § 1681b) to run a credit check on someone. For example, a job application or a loan application qualifies as a "permissible purpose". But even then, the employer or the lender is required to get permission to run a credit check. It is illegal to run a credit check on your spouse. Marriage or divorce do not qualify as a "permissible purpose" under federal laws to run a credit check on your ex. 

While the law allows you to get an oral permission, it must be obtained.  You cannot just make it up that your ex had orally consented to run a credit check.  They can testify in the court they didn't consent to one and you can end up in jail. 

 

What if you suspect that your soon-to-be-ex of hiding assets?

Even you suspect your soon-to-be-ex-spouse of hiding assets you cannot run a credit check on them. Legally, your ex-spouse cannot hide their assets during a divorce. Both of you will be required to file a financial disclosure during the divorce proceedings. For example in California, both spouses cannot even start divorce proceedings without filling out the mandatory financial disclosure form. If your state law doesn't require you to fill out a mandatory financial disclosure form, you can ask your lawyer to demand a financial disclosure from your ex-spouse during the divorce.  

 

Is it OK to run a credit check on your spouse's small business during a divorce?

Yes, it is legal to access your spouse's business credit report without their knowledge or permission. Unlike the consumer credit reports, the business credit reports are not regulated by the Federal Fair Credit Reporting Act. However, it might not be wise to do so during the divorce proceedings as it may complicate the matter, and things can go against you.

 

How to stop your ex-spouse from accessing your credit report?

Protecting your credit during and after the divorce is very important. There are several ways to stop your ex-husband or ex-wife from accessing credit.  

• Credit Freeze - All three credit agencies, Equifax, Experian, and Transunion allow consumers to put a credit freeze for free. It restricts access to your credit report, and only you can unfreeze it if you need to apply for a new credit card or a loan. 
• Fraud Alerts - You can also set free fraud alerts with all three credit agencies. It will make it difficult for anyone to open new credit or loan account under your name.
• Financial Separation - During the divorce process you can get an official financial separation from the court so that your soon-to-be-ex cannot use your credit info to get any credit cards, loans, or run a credit check on you.
• Physically Protect Information - Do not write your personal information on a piece of paper or a computer hard drive or on the internet that could be accessed by your ex. 
• Change Passwords - Change passwords of all financial accounts that are in your name. 

 

Penalties for running an unauthorized credit check

If you still decide to run a credit check on your ex, you can face penalties and possibly jail time.  They can sue you in a federal and/or state court for damages and legal fees.  In addition to that your state may have its own set of penalties including the jail time.

 

To summarize, following federal and state laws is a must. It is not a good idea to get your ex-spouse's credit report during or after the divorce as it can complicate your divorce proceedings, and you can end up in jail too.  If your credit score has been hurt because of your ex's unauthorized actions you can work on imporviing your credit with a few simple steps.  These steps will also prevent a mixed credit file with your and your husband's credit information on the same report. 

Warning:  This post is neither financial, health, legal, or personal advice nor a substitute for the advice offered by a professional. These are serious matters, and the help of a professional is recommended as it can impact your future.