When a couple separates, it is a good idea to close any joint credit accounts. Inform the credit care company of the impending divorce and put what is called "a hard close" on the account -- one that prohibits any new charges, now or later. Of course, what is owed must be paid.

Most amicable couples divide the debt and pay it off before the divorce if possible. It simplifies things to have the debt off the table, because transmitting paperwork to the creditors is no longer necessary.

Divorcing couples have three options in dealing with debt: pay it off when the marital estate is settled; continue to service it jointly, or divide it between the spouses. Each course has advantages and disadvantages. Most couples divide the debt and pay it off because eliminating the liability removes a friction point between former spouses.

Take the cash and let the credit go, as the poet said, is another way of saying a bird in the hand is worth two in the bush. It makes sense for some divorcing couples, particularly if one of them could die before making good all the obligations of a separation agreement.

For a person contemplating divorce, a copy of his or her credit report is a must. Very often one spouse going into a divorce -- usually the women -- may have no credit in her name, and establishing credit and a good credit report is a must. After her divorce, a good rating will help her start on her new single life. Circumstances vary, of course, but generally a person can establish credit by demonstrating a good record of repayment. Sometimes this means establishing credit with stores via so-called "minor" credit cards before getting a "major" credit card, such as MasterCard or Visa.

When a couple divorces, it is a good idea to pay off the debt and cancel the cards although some couples apportion it as part of the separation agreement.

Very often when a couple separates separation and its stresses pay havoc with finances. At the very time when they should be watching their spending, a separated couple may end up adding to their liabilities with indiscriminate credit card spending. A separation is a good time to pay cash and charge nothing.

Debt and its mismanagement are probably one of the leading causes of divorce today. Managing mushrooming debt -- when spouses live paycheck to paycheck, borrowing from Peter to pay Paul -- is like living with an insatiable monster in the house because eventually a couple sinks to neutral financial buoyancy: the point where they are spending so much money servicing their debt that a single unexpected bill sinks the boat. They simply do not have enough money left to live on.

Sometimes in the chaos and confusion of a separation, people forget the mortgage. The last thing a divorcing couple needs is trouble with the mortgage lender. Don’t forget to pay the mortgage on schedule.

When the decision to divorce has been made, couples should gather as much financial information as possible. In a divorce, a couple divides what they own and what they owe. Any piece of information about these two sides of the coin is important.

If a marital home or other real estate property is to be retitled, be certain to complete this action in a timely manner. Until title is changed, that asset may be subject to your ex-spouse’s creditors or other claims. If a decree orders a property to be quit claimed to one spouse, ensure that any mortgage note against it is also refinanced. Generally lenders will not retitle a note. Instead, you must determine if the lender will refinance the note to one individual. This most likely will involve new closing costs, and perhaps a new rate or monthly payment. Quit claim deed of a property without changing the note leaves the spouse who gives up the property responsible for the debt without owning the asset - a situation no one wants to be in.

It is important during a divorce to make sure that you minimize your credit risk. One way to do this is to get a copy of your credit report. You can go online and get one free at www.annualcreditreport.com. This will let you know if there has been debt incurred in your name that you didn’t know about. If your name is on a document, even as a co-signer, credit agencies do not care if you are divorced, they will come after you if the loan/debt goes into default. So, it’s always important to know about all debts that are associated with your name.