Divorce and Your Credit Score

 Posted on December 00, 0000 in Divorce

Divorce is often viewed by some as getting out of a bad situation. However, what many are unprepared for is the impact the divorce can have on their own credit score. Following a divorce, one can discover that his or her income, even with alimony or other support payments, is not enough to cover expenses.

Falling behind on monthly bills, running up large amounts of debt, or failing to curb your expenses to meet the new income restrictions a divorce often brings may all negatively impact your credit score.

Tips for Managing and Monitoring Your Credit Score During a Divorce

Consider implementing some or all of these tips to help monitor and maintain your credit history during and following your divorce.

• Get a copy of your credit report as soon as you know a divorce is looming. This helps you understand the bills and expenses that appear there, as well as those debts for you which you are responsible and those which are shared.

• Manage shared accounts. Establish online payment for expenses like a mortgage or other shared accounts. Late payments by one will negatively affect both persons on the account.

• Close or refinance shared accounts as soon as possible following the final divorce decree. Work with your financial institution to resolve any issues.

• Watch for excessive withdrawals or spending habits by your spouse. Detailed records can help you recover asset dissipation.

• Protect your identity. It is not unheard of that a bitter or vindictive ex-spouse might attempt to use your personal information to run up huge debt in attempt to cause headaches and ruin your credit. Consider a credit monitoring service if this is a major concern.

• Stay current on payment of your bills. A good payment history will help you maintain a good credit score.

• Try not to supplement your income with credit cards. Not only is the interest on most cards very high, but carrying the debt can negatively affect your credit score.

If you think circumstances have changed enough to warrant alimony modification, it is important to work with a meticulous Aurora divorce attorney who can seek and obtain due relief. This might include loss of income by you, a large raise by your spouse, or other financial factors.

Rely on a Knowledgeable DuPage County Divorce Lawyer to Help Protect Your Credit

Going through a divorce can be a costly, time consuming, and nerve wracking process. It is easy to see how one might overlook a detail like their credit score until it is too late. To protect yourself from unpleasant surprises work with an experienced Aurora divorce lawyer. The Law Offices of Matthew M. William, P.C. review every detail throughout the process to ensure your rights and your credit are protected.

Sources:

https://www.credit.com/personal-finance/divorce-survival-guide/

https://www.forbes.com/sites/emmajohnson/2015/04/08/472/#28417d6239ad

https://www.nerdwallet.com/family-law-attorney/finance/credit-cards-divorce-hurt-score-joint-accounts-bills-pay/