Divorce and Credit: Protecting Your Financial Health During the Split

 Posted on September 10,2019 in Divorce

Every couple is different, but it is not uncommon for one spouse to have most of the responsibility when it comes to the family’s finances. This can be troublesome during a divorce, because the spouse who did not handle the money during the marriage often gets the short end of the stick, especially when it comes to the asset division process. Divorce can wreak havoc on your financial well-being, especially when it comes to your credit score. If you are getting divorced, it is important to take control of your finances and ensure you come out of the divorce without taking a huge hit to your financial health and credit score.

Tips to Maintain and Improve Your Credit Score

Simply getting a divorce will not affect your credit score. However, other things that happen during a divorce can affect your credit for the worse. To protect your credit score and make sure you come out of the divorce with acceptable credit, here are a few tips you should follow:

• Joint accounts should be closed. If you and your spouse share any checking, savings, or credit card accounts, you should stop using these accounts and close them immediately, if possible. If your spouse has control over an account with your name on it, you may be responsible for any charges or expenditures they make. Leaving accounts open, especially credit card accounts, is playing with fire.

• Make sure the bills are still being paid on time. Some divorcing couples can get distracted by their divorce and either forget or intentionally refuse to pay utility bills or make other regular payments. It is important to keep paying all of your bills in a timely manner. It only takes one late or missed payment on your mortgage or credit cards to lower your credit score.

• Build your personal credit. Having good credit is what allows you to borrow money from institutions, and a good credit score is an indication to the world that you are good with money and responsible with your finances. Once you have closed your joint accounts, you should open up one or two new accounts in your name so you can begin building your own personal credit and creating a financial identity separate from your ex-spouse.

Hire a DuPage County Divorce Attorney Who is Skilled With Marital Finances

One of the most important decisions you will make in your divorce occurs before you even begin the negotiations. Who you choose to represent you during your divorce can make or break your financial outcome. At the Goostree Law Group, our team of skilled Wheaton, IL divorce lawyers has nearly 20 years of experience helping couples through divorce. Call our office today at 630-364-4046 to schedule a free consultation. 

Sources:

https://www.experian.com/blogs/ask-experian/credit-education/life-events/divorce-and-credit/

https://www.huffpost.com/entry/dont-let-divorce-ruin-you_b_6737036

https://www.aarp.org/money/credit-loans-debt/info-12-2012/protect-your-credit-in-divorce.html