Joint Debt In Divorce

A divorce can certainly take a toll on a person emotionally, but it can also wreak havoc on a person’s finances. For instance, your household income may be going from two people working to just a single income. It is also often the case, especially in contentious breakups, that one spouse refuses to pay their share of the bills while the divorce is ongoing. This can result not only in your bank account taking a hit, but your credit score may also be greatly affected. Even in a “friendly” divorce, many people find their credit rating has taken a nose dive. Financial advisors say there are steps you can take to help repair and rebuild your credit after a divorce.

When it comes to repairing your credit after a divorce, the first step one should take is finding out exactly where their credit score stands. This can be done by pulling credit reports from each of the three major credit bureaus. Carefully examine the reports to find any and all accounts that are in your name, either solely or jointly. Unfortunately, it is not uncommon for one spouse to take out credit cards in their spouse’s name without their knowledge – especially in a troubled marriage –  and these accounts can have a negative effect on one’s credit score.

Close out accounts held jointly with your ex-spouse, and open accounts in your name only. The closing of accounts may cause your credit score to dip initially, but it will go back up again once you begin re-establishing credit in your name alone. You should also contact your current credit card companies and let them know you are now divorced. Inquire whether or not they will issue you a new credit card account in your name only. It is also important to have your name removed from accounts where you are listed as an authorized user.

 Working with professionals that understand the Divorce process while helping you make informed decisions of your future.

 

 

Karen Jones is a Licensed Mortgage Loan Officer (NMLS 307015) located in Phoenix and serving Arizona and California consumers with their home lending needs. As a Banker of over 39 years, Karen is dedicated in ensuring that her clients are well educated and prepared for their new home purchase.  Learn more about our 100% Financing programs and obtain your Buyer Credit Approval before you start shopping. Let a home loan specialist guide you by contacting Home Loan Officer, Karen Jones from AmeriFirst Financial, Inc. located in Phoenix, Arizona.

 

 

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