If you are thinking about getting a divorce, your credit score may be the
last thing on your mind, but you’d better think twice. Divorce can
greatly impact your finances and credit history. Even the most amicable
divorce can leave you in financial trouble and with bad credit.
In many marriages one partner often takes care of all the finances and
the other spouse is in the dark. When a divorce happens, your marriage
ends, but not your financial responsibilities, and a bad credit score
can follow you for a lifetime. Make sure you don’t overlook your credit.
Did you know you can actually be responsible for some of the debts your
spouse has accumulated even after the divorce if things are not handled
correctly? You must take steps to properly sever all financial ties with
your ex. A seasoned divorce attorney/ mediator, some good planning and
being practical may save you from more financial difficulties after your divorce.
If you are divorcing and have late or missed payments on accounts as a
result, it may negatively impact credit scores. In community property
states, property – and debts – acquired during the marriage
are generally owed equally by both spouses. That means you and your spouse
may both be responsible for any debt you incurred while you were married.
While a divorce decree may give your former spouse responsibility for a
joint account, that doesn’t let you off the hook with lenders and
creditors. If your name remains on an account, late or missed payments
reported to credit bureaus may negatively impact credit scores.
I suggest you have knowledge of all your financial obligations-bank accounts,
mortgages, credit cards, utilities, etc. Make sure you know what your
responsibilities will be. Check your credit score before you get divorced.
I suggest you do this at least once a year, but it is especially important
before and after major life events, like a divorce.
By taking a look at your credit score you can see where you stand and what
credit surgery may need to be done. You may be surprised to find your
spouse has not only tarnished your credit, but also owes thousands of
dollars to the IRS, for which you may be liable, which was the case with
one of my recent clients. Don’t ignore your credit. Once you have
legally separated, make sure you notify your joint accounts and credit
cards by email and by mail. Set-up your own accounts and credit cards
in your name.
Since this world revolves around credit, a low credit score can have a
devastating impact on your financial life and your ability to move forward
after a divorce. If you are thinking about divorce, take the proper steps,
get the best possible professional help, and don’t forget the power
of your credit.
If you are thinking about divorce and have questions about your credit,
finances, property, and spousal support, give me a call. My comprehensive
1 hour consultation will provide answers to many of your questions!
During the ongoing COVID-19 Pandemic we are offering
FREE 1 HOUR CONSULTATIONS which areconveniently conducted virtually by telephone or TeleDivorce by Zoom or Skype to reduce
risk and maintain safety.
I look forward to speaking with you.
Continue to Stay Home, Stay Healthy & Stay Safe!
Call New York Divorce Lawyer, Lois Brenner now to book your free consultation.
Appointments are still available. Call now!