Sadly, over 50% of marriages end in divorce. As part of the divorce process, many of the people involved are either buying or selling a house, or both. Protecting your credit rating as you move through divorce is critical as couples separate and need to potentially access loans on their own.
I can assist my clients to recognize potential obstacles and opportunities in their credit process. Here are five steps to protect your credit during the divorce process
- Spouses should continue to communicate so as to avoid any misunderstanding as to who is paying which bill.
- Ask each creditor that extended you credit to transfer the debt to the name of the person who will be responsible.
- Keep joint bills current – even missed payments made years after the divorce will be reported for all individuals associated with the account.
- Close as many joint accounts as possible. Ask the credit grantor to remove a spouse who is only an authorized user or close the joint account to avoid additional charges.
- Check for credit errors as changes occur and dispute any mistakes in writing. Access your credit report annually, for free, from annualcreditreport.com.
Understanding and knowing where your credit rating stands is a good place to start. This can be especially important if one spouse was uninvolved in the family finances. Financial consequences of divorce are most often a significant issue to be worked through. Coming into the process understanding your personal finance picture can help make the process clearer and easier to navigate.
Ronald Lieberman, Esq. is a shareholder and partner with Adinolfi, Lieberman, Burick, Falkenstein, Roberto & Molotsky, PA in Haddonfield, New Jersey. Ron represents clients throughout New Jersey across the spectrum of family law matters. Whether your case is complex or relatively straightforward, our office has the resources and experience to address your unique situation. Contact our office today for a confidential consultation.