Unfortunately, getting a divorce can affect your credit. When you and your soon-to-be ex-spouse agreed to share financial responsibility by having combined accounts or property, and either both or one of you took out loans, credit problems for both parties are to be expected. Having no knowledge of the fact that your spouse increased his or her debt amount by opening certain credit cards or taking out loans does not free you of financial burden once the divorce is finalized.
Don’t Let Bad Credit Happen to You
Upon the mutual decision of separation, you should take action to ensure that you will not be left in financial ruin after the divorce is finalized. Open up a line of communication so that both of you are aware of the steps necessary to assert financial peace of mind. It is important that you keep records of agreements made between you and your spouse, so that confusion does not interfere when court proceedings begin, or so that creditors refrain from attempting to collect moneys for your spouse’s payments. Here are some tips to avoid bad credit after a divorce:
- When considering separating or dissolving joint accounts, make sure you and your spouse each inform yourselves and take responsibility for each of account that belongs solely to you. Remove names from accounts, cancel accounts, or agree which accounts belong to whom.
- Settle the distribution of cash left over (liquid assets) after having assigned debts, loans, credit cards, and property.
- Instead of living the nightmare of knowing your credit is going down the drain due to foreclosure of home, decide to sell the house and distribute the moneys through an agreement.
- Make sure to go over the divorce decree, since it doesn’t break any financial ties.
Maintaining a civil relationship with your spouse during a divorce will contribute to the overall positive outcome of the divorce. Remember that all steps to financial freedom during a divorce must be done correctly. Your credit can haunt you for the rest of your life, if you don’t take proper precaution.
For more information on divorce and credit scores, contact McAllen divorce attorneys Barrera, Sanchez & Associates, P.C., at (956) 287-7555. Their knowledge and expertise will help you in the divorce process.