Using Credit Reports Strategically in Discovery

Credit reports can be a valuable — and sometimes overlooked — resource in family law matters. Incorporating them early in the discovery phase can provide meaningful insight into the parties’ financial picture.

A credit report can help identify undisclosed liabilities, clarify whether debts are marital or separate, reveal missed court-ordered payments, and shed light on a client’s overall credit profile when assessing the dependability of anticipated payments.

Typically, a credit report will include:

• Revolving accounts (e.g., credit cards)

• Installment obligations (e.g., mortgages, vehicle loans)

• Account opening dates

• Current balances

• Payment history

• Account status (current, delinquent, or in default)

• Credit limits

• Bankruptcies

• Medical collections

• Collection accounts

• Defaulted child or spousal support (when reported)
  

In some cases, one spouse may open accounts in the other’s name without their knowledge — particularly if credit activity is not regularly monitored. Reviewing credit reports can bring these issues to light.

For that reason, clients should be encouraged to obtain and monitor their reports throughout the divorce process. It is important to check with all three national credit bureaus — Experian, Equifax, and TransUnion — since not every creditor reports to each bureau.

Clients may obtain their reports in the following ways:

• A free annual report from each bureau at AnnualCreditReport.com

• A free Equifax account, which provides multiple complimentary reports per year

• A free Experian account for access to their credit report

• Free credit reports directly through TransUnion
  

While accessing another person’s credit report without proper authorization or a court order may be unlawful, it is not uncommon for an opposing party to attempt to do so. Clients who have concerns may wish to place a credit freeze. At minimum, proactively reviewing their reports helps protect against unauthorized access and provides an accurate snapshot of their financial standing at a critical time.

If you would like to discuss this further — or if I can assist with any real property matters in your cases — please don’t hesitate to reach out. I’m always glad to be a resource.