The end of a marriage is often associated with heartbreak and emotional upheaval.
However, the former love-of-your-life could also be walking away with half of your assets and leave you in a bad credit situation.
During the emotional challenges of divorce, one thing that should not change is the credit status you’ve worked so hard to achieve. Unfortunately, the opposite occurs for too many. Unfulfilled promises to pay bills, maxing out credit cards, and a breakdown in communication can lead to the annihilation of at least one spouse’s credit.
Besides having to sort through all of your property and assets, you will also have to deal with all of the joint credit accounts you and your future ex-spouse share. While in the first stages of marital bliss, you both probably signed for a new car, checking accounts, and maybe a new home. Now, you will have to unwind all of these debts and determine who will be responsible for which ones.
Calm down; it doesn’t have to be this way. By taking a proactive approach and creating a specific plan to maintain your credit status, you can ensure that starting over does not have to mean rebuilding your excellent credit.
While no one goes into a marriage expecting it to fail, you must be realistic – half of all marriages end in divorce. And, it’s much easier to divorce your spouse than it is to divorce your creditors.
While a divorce has the potential to significantly damage your credit, it is possible to emerge from a divorce with your credit rating intact. By following these suggestions, you will be on-track to improving your credit health after your divorce.
The following are tips to help you improve your credit health after your divorce is finalized:
- Review your credit report and find out your credit score. Make sure your ex’s debts are not showing up on your credit report. If any do, contact the creditor and have your name removed from the account.
- Cancel all joint cards and accounts after paying off any balances. This is just in case your ex decides to take a shopping spree and leave you holding the bag.
- Apply for your own credit card – with a low limit so you won’t be tempted to spend money you don’t currently have.
- Open your own checking account. With your own account, in your own name, your ex won’t be able to have access to your money. In addition, it can help you protect your credit by ensuring that you have funds available.
- Paying your account. Make timely payments on your account if you cannot pay the balance off completely. When you receive your bill, have a plan in place to remind you to pay it by the due date.
- Bankruptcy. If you cannot keep up with monthly bill payments, as a last resort, consider bankruptcy. While bankruptcy is extremely damaging to your credit in the short-term, it can be used to deal with your current situation.
Your divorce may be the most significant legal and financial event of your life. You need an Orange County divorce lawyer that focuses on getting you the best possible results. Find out how Amy M. Montes family law offices can help ensure that your rights are protected, and that you get a fair result in your divorce case.
Call today for a free initial consultation, or schedule and appointment, we are ready to discuss your case.
