It is unbelievable that you are going through a divorce with the person with whom you once had close ties as well. But at some point, when relationships don’t work out, you have no choice but to seek a divorce. Breakups in a marriage can have a detrimental effect on your credit report if you don’t take the proper steps to protect it. Listed below are some tips you can use to safeguard your good credit during a divorce.
Credit and Divorce – What Should We Do About Bills During Divorce?
Before you get divorced, make sure you do the following:
Credit and Divorce – Get your credit report
Check your credit reports for joint accounts and authorized user accounts. Also, check to make sure your spouse’s information is not merged with yours. If there are authorized users and combined accounts, discuss it with the credit bureau and ask them to separate the accounts and remove your spouse’s name from your credit report. Three months after the divorce is final, check your report again to make sure your spouse isn’t opening new accounts in your name. If so, question items like identity theft and place a fraud alert and credit freeze on your credit report.
Credit and Divorce – Credit cards
Call the credit card companies and let them know that you want to pay off the balance on the cards and close the accounts due to circumstantial events. If your spouse is an authorized user, remove them. You can then open new accounts in your name. If your spouse is giving you trouble closing accounts, have the credit card company freeze the accounts. Follow up with a letter to the lender reiterating that you want to close the account. Then request your credit report 30 days later to make sure your accounts have been closed. After the divorce is finalized, send the creditors a copy of the
declare, in case there is a problem in the future.
Credit and Divorce – Check and save
You should split what’s left in your joint account with your spouse, then close that account and open a new one in your name only.
Credit and Divorce – House
If you don’t have children, you and your spouse can sell the house and split the proceeds. If your spouse decides to keep the house with the kids, try refinancing the house in just her name. Do not sign a quitclaim deed or allow your name to be removed from the title because you will lose ownership and remain responsible for repaying the loan. Make sure they send you the mortgage payment to keep track of payments.
Credit and Divorce – Because
Try to sell it first and then split the profits. If the spouse wants the vehicle, try to refinance it in their name. If that doesn’t work, keep your name on the title and make sure your spouse is footing the bill by having the statement delivered to your home.
Bottom line, going through a breakup with the person you love is not fun, but with the right education on how to protect your good credit during this stage, it will produce great results. Now that you’ve gained additional knowledge, get out there and take action.