Divorce - Financial Steps To Good CreditOnce you have decided on divorce, there are some good ways you should immediately protect yourself financially. First, the separation of any and all joint accounts, including credit cards, savings and car loans is a superb immediate action. This can be done quickly and easily with a phone call to creditors. This way, if your spouse misses a payment or bounces a check, it will not affect your credit history negatively.
In some cases, however, it is not so easy to separate joint accounts. In this scenario, your personal credit will remain tied to your joint account, and even if your spouse has run up costs, you should still make payments. In cases like this, no payment equals real credit damage, despite the fact that the debt may not have been incurred by you. This is particularly important for your mortgage, as your home could be seized if payments are not received. Selling the house and splitting the received value or refinancing the current mortgage to remove your spouse from ownership are two ways of accomplishing this.
Establishing your own personal credit is also a great thing, particularly if most of your credit card accounts are of the joint variety. Once the marriage is finished, you will need your own credit, so starting a history today is very positive.
What If Things Aren't Going Well?
Hey, were all human beings here. Which means that the emotional factors of divorce are always a consideration when splitting the assets, even when they shouldn't be. In cases where the emotional factor is becoming too strong, consider a professional mediator to help you come to an agreement with your soon to be former spouse. Also, if there is child support to be paid, ensure it remains paid. It is not only the best thing for your child, it also will keep you from being arrested under the various deadbeat parent laws recently enacted across various states. On the other hand, if you are supposed to be receiving support for your child, ensure those payments are coming in full and on time. If this is not the case, do not be afraid to contact an attorney immediately.
Avoid Bankruptcy At All CostsAlthough in divorce, especially one where money and credit problems may have been a root cause, avoiding bankruptcy is a critical move. This is because bankruptcy can stay on your credit report for up to 10 years, and can damage your credit heavily. It can also cost you thousands of dollars in the future, as your ability to secure loans or mortgages can be prohibited, or obtained at much higher cost than you would expect.
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