Are you thinking about your New Year’s Resolutions and about making some changes in your life. If you are thinking about getting a divorce, your credit score may be the last thing on your mind, but you’d better think twice. Divorce can greatly impact your finances and credit history. Even the most amicable divorce can leave you in financial trouble and with bad credit.
In many marriages one partner often takes care of all the bills and the other spouse is in the dark. When a divorce happens your marriage ends, but not your financial responsibilities and a bad credit score can follow you for a lifetime. Make sure you don’t overlook your credit.
Did you know you can actually be responsible for some of the debts your spouse has accumulated even after the divorce if things are not handled correctly? You must take steps to properly sever all financial ties with your ex. A good attorney/ mediator, some good planning and being practical may save you from more financial difficulties after your divorce.
I suggest you have knowledge of all your financial obligations-bank accounts, mortgages, credit cards, utilities, etc. Make sure you know what your responsibilities will be. Check your credit score before you get divorced. I suggest you do this at least once a year, but it is especially important before and after major life events, like a divorce.
By taking a look at your credit score you can see where you stand and what credit surgery may need to be done. You may be surprised to find your spouse has not only tarnished your credit, but also owes thousands of dollars to the IRS, for which you may be liable, which was the case with one of my recent clients. Don’t ignore your credit. Once you have legally separated make sure you notify your joint accounts and credit cards by phone and in writing. Set-up your own accounts and credit cards in your name.
Since this world revolves around credit, a low credit score can have a devastating effect on your financial life and your ability to move forward after a divorce. If you are thinking about divorce, take the proper steps, get the best possible professional help, and don’t forget the power of your credit.