It’s awful enough you are contending with the emotional trauma a divorce entails, but what about your finances? Are those going to absorb, or at the bare minimum, survive the damage as well? As you are dividing your assets, don’t forget how your future depends on that credit score. Therefore, the last thing you need is to be burdened with your soon-to-be ex’s debt. Here are four methods to employ to assure your credit does not take a nosedive during a divorce.
Be Aware of Your Responsibilities During a Divorce
Although your life is certainly changing during a divorce that does not alter the fact that joint debt must be resolved. It’s not going anywhere even if you are out the door. For instance, if you took out a loan with your spouse to remodel your kitchen, you still have to pay it off even if you will not be residing in the home. The same thing applies to credit cards you accumulated during the union with both your names on them. If your ex decides to not keep up with the payments, that problem falls into your lap. Make sure you remove your name from every account, including loan payments, that you share with your spouse.
Start Your Own Checking Account
During a divorce, people may engage in antagonistic, vengeful behavior to soothe their raw emotions by fighting back. Although it may not seem likely or even be unimaginable, your soon-to-be ex could take every bit of cash out of the bank accounts you share or charge up a small fortune on your credit cards. You cannot be financially responsible in the future without your own checking account, so make that trip to the bank ASAP. While you are there also transfer any automatic payments that were being removed from that account to your new one.
Apply for a Credit Card
It may not sound like the best idea with your future in doubt, but you have already went ahead and cancelled any joint accounts with your upcoming ex. Even if you have no credit history or are not employed your financial future depends on your credit rating. Start filling out applications for a credit card that is secured or has a very small credit line. If you are nervous about applying for credit without possessing a job, there are options to obtain credit cards without a documented salary. Explore them!
Create New Passwords and Alter Your Personal Details
During a divorce you always want to protect yourself from the occasion where your ex can put their hands on your financial data. Alter your PIN numbers for your cards and implement new passwords on all your accounts that your spouse would never imagine you using to prevent any unwanted activity. If you have already left the residence and are living somewhere new, don’t delay. Enter your information on all your accounts, including your credit report, and then double check to make sure all the new data made it to the right hands.