It can be tough to think about the future when you are dealing with all of the stress of the divorce process, but it’s important to think about your finances and how your credit score could be affected. Fortunately, there are some things that you can do to protect your credit as you go through a divorce. Our Dallas County divorce lawyers can give you some advice about what you should do.
Which Actions Can I Take to Protect My Credit Score?
You have a lot on your plate already, but you should try to think about your credit score as soon as you know that a divorce is happening. You can take steps to minimize damage to your score like:
- Closing joint accounts
- Notifying creditors about the divorce
- Continuing to make any payments on time
- Removing your spouse as an authorized user on any account
How Can I Continue to Protect My Credit Score During Divorce?
You can continue monitoring your credit score and report through the three major reporting bureaus, Transunion, Equifax, and Experian. You can also freeze your credit outright. This can prevent someone from taking out a loan or opening a new card in your name.
What Happens to Joint Debt in a Divorce?
Joint debt needs to be split up just like joint assets would be. And this does not just apply to debt that you and your spouse ran up together, like a car loan you both signed for or a mortgage that you both took out. If a debt is accumulated during the marriage, it can be considered a joint debt.
So this can apply to your or your spouse’s individual credit card bills or personal loans. It shouldn’t apply to debts accumulated before marriage, like student loans or credit card charges you made before getting married.
How Can I Rebuild Credit After Divorce?
If you were in a situation where you mostly relied on your spouse’s credit during your marriage, you may leave your marriage and realize that you have to rebuild your credit and get that score higher if you want to take on any larger financial obligations. Some responsible financial habits can help you rebuild and raise your credit score over time though. We recommend getting a card of your own and paying it off on time each month. If you have the opportunity to get a higher credit limit or take out another card, that can help. Just do not spend more than you can pay back. Late payments and carrying too much of a balance can harm your credit score.
Talk to a Lawyer Today
When you are ready to learn more about how our attorneys can be of assistance, contact Iowa Defenders, PLLC. We can schedule a consultation and tell you more about how to handle some of the financial bumps the divorce process can throw your way.
