Protecting Credit in Divorce

 Posted on December 00,0000 in Divorce Finances

Though the actual act of divorcing does not affect your credit score, divorcing can have an effect on your credit through indirect ways. Women, especially, have traditionally had issues with their credit ratings after divorce because men were traditionally the breadwinners of the families and controlled the finances. Although things have changed, there are still a majority of women who have financial issues after divorce. One of those issues is trying to rebuild credit after years of intermingled credit with their spouses. Understanding steps you can take before and after your divorce to help protect your credit can be crucial to your financial wellbeing. Close Your Joint Accounts The first step you should take after you begin the divorce process is closing all of you and your spouse’s joint accounts. Because the accounts are joint accounts, both you and your ex are responsible for the accounts and the debts accrued on those accounts. By closing the accounts, you are preventing your ex from spending any more money on them and designating the debt to one person, rather than both of you. Keep Paying Your Bills You should also remember that it is a top priority to keep paying all of your bills, even if you are going through a divorce. On credit cards, make at least the minimum monthly payment, and for mortgage payments, you should pay them in full. Even one missed payment can damage your credit score and can cause future lenders to deny you or raise interest rates for you. Establish Your Own Credit One of the more important steps you can take to protect your credit is to establish your own credit under solely your name. Getting a credit card that has a small limit, such as a credit card from a store, can raise your credit score if you pay off the card as soon as you use it. Get Help from an Experienced Aurora Divorce Lawyer

If you are thinking about a divorce, one of the things you need to address is your finances and how you will be financially after the divorce. With the help of a knowledgeable DuPage County divorce attorney, you can take the necessary steps to protect yourself and your credit during and after your divorce. Contact the Law Offices of Matthew M. Williams, P.C. to begin discussing your situation. Call the office at 630-409-8184 to set up a consultation.

Sources:

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

https://www.huffingtonpost.com/curtis-arnold/dont-let-divorce-ruin-you_b_6737036.html

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