Whether you are seeking a divorce or your spouse is, it is likely that many issues and concerns are running through your head as you begin the process of filing for dissolution. Your financial well-being is likely a top concern, as it may be difficult to picture your post-divorce life without the security of a two-income household. In some cases, divorcing spouses want to ensure they are leaving the marriage with what is theirs, which includes property, assets, and debts.
A person’s credit score is important. It is what allows them to make major purchases and ensure that their financial future is secure. Married couples tend to have their finances combined, which could also mean that their credit is as well. Thus, it is imperative to note how divorcing couples can untangle their credit while tackling property division during the divorce process.
In the beginning stages of divorce, it is important to ensure that all shared bills are paid on time. This will reduce the harm that could be caused to your credit score in the event that they are not paid on time. By working together, divorcing couples can avoid these financial hardships.
Untangling shared bills with your soon-to-be-ex is an important step to take because creditors will not be willing to give you a free pass just because your ex failed to pay the bills he or she agreed to assume in the dissolution process. Jointly held debts could negatively affect your credit score, making it important to take your name off the debts you will no longer be responsible for post-divorce. This might mean closing joint accounts, paying only your fair share of jointly held debts, and taking steps to build up your credit score.
The property division process is more than just dividing up marital property. It includes assessing your assets and debts, ensuring that the correct spouse maintains these. If you are dealing with property division or other divorce issues, it is important to understand how best to resolve these problems, ensuring your rights are protected during and after divorce.
Source: Msn.com, “How to Untangle Your Credit When You Divorce,” Emmet Pierce, Nov. 27, 2017