Divorces can affect all aspects of your life including your finances. If you are going through a divorce, you should consider what steps you can take to protect your credit during and after the divorce process. You want to ensure that you are not held liable for your ex-spouse’s debts. It is important to have your credit sorted, contact a trusted Monmouth County Family Law Attorney who can help you land on your feet after a divorce.
Should I Separate Joint Accounts?
If you have any joint accounts with your ex-spouse, you must close them immediately. By closing it, you are protecting yourself from any future debt or financial issues your spouse incurs. Even though you are getting divorced, that doesn’t untangle your accounts. Normally, a divorce decree will outline who is responsible for which debts. Oftentimes, lenders won’t abide by a divorce decree if your name is still on any joint accounts. They may hold you liable for any debts accumulated. For this reason, it is essential that you separate your joint accounts as quickly as possible to protect yourself from any future liability. Separating your joint accounts will negatively impact your credit score. However, once you open your own account, you can raise it back up.
Should I Remove Authorized User Status On My Credit Card?
It is crucial that you review all of your credit cards that grant your ex-spouse authorized user status. If your ex-spouse is an authorized user on your credit card, they have the power to make charges to your account. Any debt that they accumulate will fall into your lap. It is a very simple process to have someone removed as an authorized user on your credit card, all you have to do is call your provider. You must remove your ex-spouse’s authorized user status to protect your credit.
Should I Create a Budget?
Unfortunately, when a couple gets divorced the family income is usually cut by a substantial amount. This results in necessary lifestyle changes. The change in income can often make it harder to pay your bills on time which can negatively impact your credit score. If you were not the primary breadwinner, you are looking at a lot of changes to the way you save and spend money. You will need to effectively cut down and prioritize your essential needs. A budget helps you save money which helps you pay bills on time. This way you won’t accumulate debt. By creating a budget you are protecting and improving your credit. Don’t hesitate to contact a devoted Monmouth County Divorce Attorney who can help you protect your credit during and after a divorce.
Contact our experienced Red Bank firm
If you require strong and dedicated representation for any family law, criminal defense, business law, real estate law, or estate planning matter, contact The Law Offices of George J. Mardinly to schedule a consultation.