Do Not Let Your Divorce Destroy Your Credit

 Posted on January 21, 2021 in Divorce Finances

Ending a marriage is undoubtedly one of the most emotionally draining situations many people have to face. At this difficult time, it is vitally important to be aware of the negative impact this emotional upheaval can have on personal finances. While working through your separation and divorce settlement process, it is necessary to take proactive responsibility for safeguarding your personal finances and credit score.

Good Credit Is Crucial

For spouses who have not been responsible for bill-paying in the marriage, the transition to successfully managing their personal finances can be challenging. At our firm, we work with our clients to get an overall understanding of their finances so we can help them make smart decisions going forward. One important area of focus involves the personal credit score. Everyone has their own credit score assigned to them by the credit reporting agencies, regardless of if they are single or married. However, for married people, depending on how the couple’s credit and loan accounts were set-up and administered, their individual credit scores may be substantially different.

It is important to maintain a high credit score so that you can:

• Qualify for a rental lease or mortgage loan
• Obtain low-interest rates on unsecured and secured debt
• Clear credit checks for employment purposes

Bills Are a Priority

Many people who are contending with a separation or divorce experience financial constraints that can make it challenging to meet their obligations. Prioritizing bill payments and staying current on all accounts is one area of fiscal management that you must make a priority during the divorce process. Every situation is unique, but, in general, you would do well to prioritize the following bill categories:

• Rent or mortgage payments
• Vehicle loan payments
• Credit card payments
• All utilities, including your cell phone and internet service accounts

Focus on Building Your Own Financial Identity

In addition to paying most bills promptly, it is important for clients in the separation or divorce process to begin building their own financial identity as soon as possible. It is especially important to prioritize closing all joint accounts so that unauthorized charges made by the other spouse that result in new, shared debts are not a possibility. As soon as possible, you should:

• Open new bank accounts and credit lines as a single account holder

• Close all joint accounts

• Review your annual credit report from the three major credit reporting agencies

Speak With a DuPage County Divorce Attorney

If you are thinking about getting divorced, contact an experienced Wheaton family law attorney to get the guidance you need throughout the process. Call 630-665-2500 for a confidential consultation at Stock, Carlson & Duff, LLC today. We will work hard to ensure that your rights and best interests are fully protected.

Source:

https://www.huffpost.com/entry/dont-let-divorce-ruin-you_b_6737036