Protecting your credit score throughout your divorce

PROTECTING YOUR CREDIT SCORE THROUGHOUT YOUR DIVORCE

When you and your spouse choose to divorce, it is absolutely crucial that you make sure you completely separate your finances. While you may choose to separate your finances immediately or wait until closer to the finalization, depending on your needs and the nature of your relationship with your spouse, make sure that your finances are completely separate once the divorce is complete.

The greatest risk, in many cases, is that you or your ex-spouse may make a financial mistake that negatively impacts the other party, even well after your divorce. This commonly occurs when spouses choose to add each other as “users” of their personal accounts and lines of credit. While this is not the same as having a joint account or line of credit, it creates many of the same complications.

Let’s say that you leave your name on a credit account that belongs to your ex, for whatever reason. If, in the future, he or she misses a payment on that account, then you may see that action negatively impact your credit score. Unfortunately, you may not realize the damage dealt to your credit score until you find it difficult to qualify for loans and other credit-dependent opportunities like home buying.

Be sure that you understand all of the financial implications of your divorce before you move forward. Even if you and your spouse face a relatively simple divorce, executing it poorly may leave you both disadvantaged as you start your new season of life as a single person. The guidance of an experienced attorney helps ensure that you don’t miss out on important protections while you work towards the divorce you need, keeping your rights and priorities secure.

Source: FindLaw, “Credit and Divorce,” accessed Jan. 23, 2018

2019-10-31T22:53:14+00:0023 Jan|
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