Protecting Your Credit Score is a Priority During Divorce

A divorce can certainly take a toll on a person emotionally, but it can also wreak havoc on a persons’ finances. For instance, your household income may be going from two people working to just a single income.   And if one spouse refuses to pay their share of the bills while the divorce is ongoing, this can result in 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. Credit Repair Specialists say there are steps you can take to help repair and rebuild your credit after a divorce.

During the Discovery portion of your divorce,  you should uncover what debts you and your soon-to-be ex-spouse have opened.  You want to be very detailed in this process as this information is going to be used for the creation of your Property Settlement Statement.  And once the Property Settlement Statement is completed, it is final, so do your research carefully.

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.

During the divorce process, it is important to keep your attorney/mediator informed of any issues that surface regarding martial finances as you are going through the divorce. If your spouse is supposed to pay a share of the bills and refuses, your attorney will know what legal options you have – such as requesting a hearing where the court can order your spouse to make the payments.

This blog is written for informational purposes only.  You are advised to seek the services of a professional trained in the Divorce process.

Reposted with permission from:
Sal Bonanno
National Account Manager | First Premier Credit Repair
Main: 855.278.3578  Direct: 646.283.2783

 

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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