|
Divorce is not something that anyone wants to go through in their lifetime. Many negative things can result from divorce. It can also have a negative effect on your credit situation. Is there any way around the credit mess that can come with divorce? Obviously you do not want to be stuck with a credit mess that can affect your report for years to come. What can you do?
Make Note of Important Accounts
During your time being married, you probably had joint accounts with your spouse. If you choose to maintain those joint accounts during the divorce process, you need to pay attention to them. Make sure you both continue to make payments and communicate about those accounts. If you fall behind then your credit score will be affected because of it. Since the goal is to continue the good credit, you need to continue the regular payments. That is one way you can prevent bad credit from overtaking your divorce.
When the divorce is complete, you need to go your separate ways on all account related matters. Because if you keep your accounts together, and one person defaults on a loan, you can be held responsible. Even though you are technically not married still, your name is still on the defaulting account. So get that taken care of. You do not want their mistakes to be your credit downfall.
You need to alert the appropriate parties of the split. The parties would be anything involving any part of your dual finances. If your soon to be ex-spouse does not want to cooperate, then you will need to take the situation into your own hands. It is your credit, remember, so you only need to think about yourself. So joint accounts should become sole accounts. No matter the hassle your ex-spouse gives you. If they want to piggyback off of your credit, then you should be wary. Do not put yourself in a situation that will hurt you!
Key Points to Limit the Effect on Your Credit
- Your bank account should be in your name only
- Make sure you have your credit card in your name only
- Freeze all bank accounts until the split takes place
- Consult your credit report for errors during the split
- Let the credit bureau know when the divorce is official, and have them watch for troubles
- Ask if the creditor will remove your ex-spouses name from your financial matters
You can manage this divorce very successfully and limit the effect on your credit. The trouble comes when you just start splitting everything up and do not assess the situation. Remain focused on all payments and bills, and make sure you are caught up with payments on everything by the time of the divorce. All it takes is a little time and you can break the marriage without destroying your credit. Remember that you should not let the other person dictate what is put on your credit report. Once the divorce is done, they should not have any control over your finances ever again.
Additional Resources:
www.divorcenet.com/states/georgia/gaart_10 - Divorce and Credit Issues
|
