If you have a joint account or financial tie with another person and your relationship with that person changes, it may be in your interest to have that financial association removed.
You can do so by requesting a notice of disassociation.
In this article we’ll explain what a notice of disassociation is, how you can request one, and why it might be in your interest to financially disassociate from someone – especially if they have a bad credit history that could impact your own.
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What is a notice of disassociation?
A notice of disassociation is a document that severs the financial link between two people.
This could happen for a variety of reasons, such as divorce, death, or simply because the two people no longer want to be associated with each other.
Once the notice of disassociation is filed, it will show up on both people’s credit reports, and they will no longer be considered financially associated.
When you have a financial connection with another person it can have a major impact on both parties’ credit scores and the ability to access loans or lines of credit.
As a result, it’s important to carefully consider whether associating with someone is the right decision before you sign up to any formal agreement.
Why do people usually remove financial associates from their record?
Divorce is the most common reason people need a notice of disassociation.
When couples split up, they often want to make sure that their finances are completely separate from their ex-partner, and filing a notice of disassociation can help with that.
Another common reason is when one person dies and their estate needs to be settled; the surviving spouse or family member may file a notice of disassociation to make it clear that the deceased is no longer associated with them, especially if they previously shared a joint account.
Other reasons include businesses dissolving partnerships, or roommates deciding to stop sharing finances.
How we helped Paige
It was literally the best decision of my life, and it has actually changed my life, cheesy as that sounds, it has changed my life.
Paige , IVA Customer
Which accounts can I get a notice of disassociation for?
When two people decide to disassociate themselves from each other, there are a number of accounts that may require a notice of disassociation.
Joint bank accounts, joint mortgages, and joint credit accounts are all examples of accounts that may require this notice.
Joint bank account
A joint bank account is a type of banking account that two or more people hold together.
All parties on the account have equal access to the funds, and all must agree before any money can be withdrawn from the account.
Joint bank accounts are popular among couples who want to manage their shared finances effectively, but they can also create financial risks if not managed properly.
Some risks associated with joint bank accounts include increasing debt, lack of privacy, disputes over who can access the funds, and one party taking advantage of the other.
For these reasons, people often prefer to disassociate from a partner when their relationship ends or changes.
Joint mortgage
As the name suggests, a joint mortgage is a loan that two or more people take out together for the purchase of a home.
All parties are equally responsible for paying off the debt, and both names appear on the title deed.
Joint mortgages can be beneficial if one person has bad credit or needs help covering the costs, but they also come with risks once a financial relationship comes to an end.
The biggest risk with joint accounts is if one person defaults on their payments, the other is still responsible for paying off the debt.
Additionally, both parties are equally liable for any legal issues that arise from owning a home.
Joint credit account
A joint credit account is any type of joint loan or line of credit held by two or more people.
This allows them to purchase items together and split the cost, with each person responsible for repaying their portion of the debt.
Joint credit accounts are often used by couples who want to purchase large items like furniture or appliances together.
However, they can also be used by friends, family members and business partners who want to purchase items together.
The risks of having a joint credit account include both parties being responsible for the full amount if one person fails to make payments, as well as each person’s credit report being affected if the other party fails to pay on time, which means one party can negatively impact the other person’s credit rating.
How do you get a notice of disassociation?
Reach out to credit reference agencies
If you want to check whether the credit reference agencies have any information about a financial association you are no longer part of, contact all three of them.
They might each have different information about you. You can look at your credit reports for free from these websites:
If any incorrect financial associations are found on any credit report:
- Check you have closed all accounts
- Get in touch with the relevant credit reference agency
The specific way you apply for a notice of disassociation depends on which credit reference agency you’re dealing with, but you can find more information about the process on each of their websites.
Is it bad to end financial associations?
If you have been in a relationship with someone who has abused you financially, it can be difficult to break free from the financial link between you.
In many cases, abusers will try to keep their victims in debt, using credit cards or loans in their name.
This can leave you feeling trapped and helpless, especially if your ex-partner refuses to remove the financial link between you.
What if my financial associate doesn’t want to remove the financial link between us?
There are some steps you can take to protect yourself from further financial abuse. Firstly, make sure you keep all records of any debts in your name.
This will help you to prove that the debt is not yours if your ex-partner tries to claim it.
Secondly, contact a reputable credit counseling service, who can help you to negotiate with your creditors and develop a plan to pay off your debts.
Finally, talk to a lawyer about your rights and options under the law. With the right support, you can take control of your finances and protect yourself from further abuse.
