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.
The recommended time to do this is prior to the finalization of the divorce. You should examine credit reports of both partners. Fix any errors. Continue to deal with the rest of your finances.
If you are jointly responsible for a home mortgage, you may want to sell the home to a stranger. You can also sell the home to your partner. That makes the mortgage no longer a joint responsibility.
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.
Credit cards in both names should be changed to one name. Should this not be done and payments to credit card companies stop, it is possible that the companies will insist on payment from the other spouse. The debt could end up in collections and result in messy collection calls. Such a situation can lead back to court and get nasty. Be aware before something negative happens that the poor credit of one spouse can show up on the report of the other, even if divorced.
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.
During this process, pay all debts even if you have to sell some things to do so. This way, you are each then responsible for your own individual debts. You want to have your own financial base when you leave the marriage.
Remember that even though the divorce decree spells out the person responsible for debts, this will not negate any joint financial responsibilities which can come back to haunt you if not settled prior to the final decree. Be proactive during the divorce process and get your financial status in order. - 16463
The recommended time to do this is prior to the finalization of the divorce. You should examine credit reports of both partners. Fix any errors. Continue to deal with the rest of your finances.
If you are jointly responsible for a home mortgage, you may want to sell the home to a stranger. You can also sell the home to your partner. That makes the mortgage no longer a joint responsibility.
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.
Credit cards in both names should be changed to one name. Should this not be done and payments to credit card companies stop, it is possible that the companies will insist on payment from the other spouse. The debt could end up in collections and result in messy collection calls. Such a situation can lead back to court and get nasty. Be aware before something negative happens that the poor credit of one spouse can show up on the report of the other, even if divorced.
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.
During this process, pay all debts even if you have to sell some things to do so. This way, you are each then responsible for your own individual debts. You want to have your own financial base when you leave the marriage.
Remember that even though the divorce decree spells out the person responsible for debts, this will not negate any joint financial responsibilities which can come back to haunt you if not settled prior to the final decree. Be proactive during the divorce process and get your financial status in order. - 16463
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