Staying Financially Afloat: 3 Tips To Keep Divorce From Ruining Your Credit
Posted on: 19 April 2017
Getting out of an unhappy marriage will cost you on average anywhere from $15,000 to $20,000. If you are already having financial woes or if your former partner is bad with finances, the process of getting a divorce can absolutely ruin your credit. With help from a divorce attorney, you can protect your credit and watch over your finances. Your attorney will also help you keep track of your assets and your debts and also determine how they should be divided in the divorce. In the meantime, most divorce attorneys will recommend that you implement the following 3 tips.
Open Up Your Own Bank Accounts
If you haven't opened up your own bank account already, now is the time to do so. You definitely don't want your finances to still be mixed with your former partner or things can get complicated. Have your employer deposit your income to the new bank account, so that you have your own funds to work with. If you're concerned that your former partner might start spending money in the joint account, ask your divorce lawyer whether you can move half of the money in the joint account into your own account. Now is also a good time to open up your own credit card. It's time to build credit.
Close Joint Accounts and Settle with Creditors
Any joint accounts that you have in you and your partner's name should be closed. This is especially true for joint credit accounts. It will help simplify the division of debt and assets later on in the divorce proceedings. If you owe a balance on the account, your divorce attorney can help you negotiate a settlement with the creditors. Your divorce attorney will want to collect and keep any letters that the creditors send you stating that the accounts have been closed and paid in full.
Freeze Accounts that Can't Be Closed
You might not be able to close all accounts. Some accounts with larger balances might be left open. In which case, your attorney can send a letter to the creditors asking for the accounts to be frozen. This prevents anyone from accumulating more debt on the account. Your attorney can then take a look at the invoice to determine how this debt should be divided between you and your former spouse.
Conclusion
Getting a divorce doesn't necessarily have to ruin your credit. Although your finances might be jumbled up for a bit, a divorce attorney can help you get everything back in order again. They can help you determine your financial position during the divorce and protect you financially.
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