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Do Not Let Divorce Ruin Your Credit

Posted on in Divorce

TX divorce lawyerGoing through a divorce is undoubtedly one of the most emotionally draining situations many people have to face. At this difficult time, it is vitally important to be aware of the negative impact this emotional upheaval can have on personal finances. While working through your divorce, it is necessary to take responsibility for safeguarding your personal finances and credit score.

Good Credit Is Crucial

For spouses who have not been responsible for paying the bills during their marriages, the transition to successfully managing their personal finances can be challenging. If this describes your situation, it is important to get an overall understanding of their finances so that you can make smart decisions going forward.

One important area of focus involves your personal credit score. Everyone has their own credit score assigned to them by the credit reporting agencies, regardless of if they are single or married. However, for married people, depending on how the couple’s credit and loan accounts were set up and maintained, a person’s individual credit score may be substantially different from their spouse’s.

Good credit is important if you hope to:

  • Qualify for a rental lease or mortgage
  • Obtain low-interest rates on unsecured and secured loans or lines of credit
  • Clear credit checks for employment purposes

Bills Are a Priority

Many people dealing with a divorce experience financial struggles that can make it challenging to meet their obligations. Prioritizing bill payments and staying current on all accounts is an area of fiscal management that must remain a priority during the divorce process. A knowledgeable divorce attorney is a great resource for information about how to prioritize your bills to safeguard yourself and your credit score. Every situation is unique, but in general, you should prioritize the following bill categories:

  • Rent or mortgage payments
  • All utility accounts
  • Auto loan payments
  • Credit card payments, at least the minimum monthly payments

Building Your Own Financial Identity

In addition to paying most bills promptly, it is important for those going through a divorce to begin building their own financial identity as soon as possible. It is especially important to close all joint accounts to prevent unauthorized charges made by the other spouse from becoming new, shared obligations. Take the following actions as soon as possible:

  • Open new bank accounts and credit lines as a single account holder.
  • Close all joint accounts.
  • Review your annual credit report from the three major credit reporting agencies.

Work Closely with a Collin County Divorce Lawyer

For more information about protecting your credit during and after a Texas divorce, contact an experienced Frisco family law attorney. Call 972-954-6455 to schedule a free consultation and case review with a skilled member of the team at Law Office of Philip W. Moore, Jr. today. Let us help ensure that you have the resources you need to start building your new, post-divorce life.

Sources:

https://www.experian.com/blogs/ask-experian/how-divorce-can-impact-your-credit-scores/

https://www.bankrate.com/personal-finance/credit/divorce-hurts-credit-women/

 

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