Divorce can have unexpected effects on your credit. If you are at the point of considering a divorce, you need to find out how to deal with your finances before you receive the possibly devastating injuries to your credit. Know your total debt situation. You might want to have legal advice as you go through the division of finances.
It is strongly suggested that the financial issues be worked out prior to the actual divorce date. You need to examine the credit reports for each spouse. Any errors should be fixed so that both reports are accurate. Then you can see what credit issues need to be settled.
Joint responsibility for a home mortgage will need to be reworked. Such an issue needs careful management especially when child support and alimony is in the mix. It's possible that you may decide to sell the home and split the proceeds or you may sell the home to one partner as responsible party.
Other debts including cars, credit cards, utilities, loans also need to be only in one name. These decisions are not easy ones but are necessary.
When credit cards are in both names, get them changed to one name only. If this is not done and payments stop (even though one of you has been deemed responsible), creditors can come after the other partner. This can lead to going to "collection" and numerous unpleasant collection calls. Eventually this situation can lead back to court battles. You should know that the poor credit of one partner can affect the credit of the other.
Determine cash assets, decide on a split of same and close all joint checking and savings accounts. Then open new accounts with one name only. This way, neither partner can access the other's accounts.
It would be very positive if all joint debts could be paid even if some things have to be sold. This would ensure that each partner is responsible for his/her own debts. You want to move on with your life knowing that your financial base is secure albeit smaller than before the divorce.
Your divorce decree will spell out financial arrangements and the party responsible for each debt. However, if there are still joint debts, these can make life miserable if a creditor is not receiving payment and cause problems for the spouse decreed not responsible. Be proactive about this situation.
It is strongly suggested that the financial issues be worked out prior to the actual divorce date. You need to examine the credit reports for each spouse. Any errors should be fixed so that both reports are accurate. Then you can see what credit issues need to be settled.
Joint responsibility for a home mortgage will need to be reworked. Such an issue needs careful management especially when child support and alimony is in the mix. It's possible that you may decide to sell the home and split the proceeds or you may sell the home to one partner as responsible party.
Other debts including cars, credit cards, utilities, loans also need to be only in one name. These decisions are not easy ones but are necessary.
When credit cards are in both names, get them changed to one name only. If this is not done and payments stop (even though one of you has been deemed responsible), creditors can come after the other partner. This can lead to going to "collection" and numerous unpleasant collection calls. Eventually this situation can lead back to court battles. You should know that the poor credit of one partner can affect the credit of the other.
Determine cash assets, decide on a split of same and close all joint checking and savings accounts. Then open new accounts with one name only. This way, neither partner can access the other's accounts.
It would be very positive if all joint debts could be paid even if some things have to be sold. This would ensure that each partner is responsible for his/her own debts. You want to move on with your life knowing that your financial base is secure albeit smaller than before the divorce.
Your divorce decree will spell out financial arrangements and the party responsible for each debt. However, if there are still joint debts, these can make life miserable if a creditor is not receiving payment and cause problems for the spouse decreed not responsible. Be proactive about this situation.
About the Author:
With never before seen challenges in the credit markets it?s more important than ever to have excellent credit. For more information check out Rob Kosbergs' Detailed FREE Guide on Maintaining and Repairing your Credit Score by going to Bad Credit Repair for your FREE information.
0 comments
Post a Comment