Strategies for Protecting Your Credit During Your Divorce

 Posted on July 10, 2023 in Divorce

Divorce is a challenging and emotional journey, and amidst the turmoil, it is crucial to pay close attention to your financial well-being. Protecting your credit during this period is essential, as it can directly impact your post-divorce financial stability. Today, we will discuss strategies you can implement during divorce proceedings that can help safeguard your credit, allowing you to navigate this transition with confidence. As you go through this difficult period, your divorce attorney will be an excellent resource for discussing any questions or concerns about protecting your credit during this process. 

Consider Implementing These Strategies 

The first step you should take is closing your joint credit accounts. Joint accounts carry significant financial risks, as spouses are equally liable for the debt. Work with your attorney to close joint accounts and transfer the balance to individual accounts wherever possible. By eliminating joint credit, you limit exposure to damage caused by your ex-spouse’s financial choices. Remember to remove your name as an authorized user from your ex-spouse’s accounts. 

Next, you will want to keep meticulous records of all financial transactions during your divorce, including income, expenses, and payment toward joint debts. Maintain copies of emails, receipts, bank statements, and other relevant documents. These records can serve as evidence in case of future financial disputes and can help protect your credit by establishing a clear picture of your financial contributions.

It will also be very important to obtain copies of your credit reports from all major credit reporting agencies. Carefully review each report for inaccuracies, including joint accounts that your spouse may have opened without your knowledge. Promptly dispute any unauthorized accounts to ensure your credit history remains intact.  

If you are able, communicate frequently with your spouse regarding any outstanding financial obligations you both have and try to reach an agreement on how these will be managed. Determine who will be responsible for making timely payments and ensure that these agreements are detailed in your divorce settlement or court order. 

Finally, think twice before fighting vigorously for the marital home. Many individuals fight aggressively to keep the family home as they often have an emotional attachment to it. But it is crucial not to fight for the family home unless you can afford to live there. Often, the family homes become more of a liability than an asset after a divorce.

Contact a Joliet, IL Divorce Attorney

For well-respected and effective legal representation, contact the Plainfield, IL divorce lawyers with Law Offices of Tedone and Morton, P.C.. Call 815-666-1285 for a free consultation. 

Source - https://www.aarp.org/money/credit-loans-debt/info-12-2012/protect-your-credit-in-divorce.html