Protecting Your Credit during a Divorce

 Posted on February 04, 2016 in Divorce and Finances

Getting a divorce can have a significant effect on all areas of your life. Your daily schedule, your relationship with your children and other relatives, and your living situation will all likely be different after your divorce is finalized. If you are not careful, your credit score can also change dramatically, and not in a good way. Divorces are expensive, especially when they are contentious. When a divorcing couple does not have an amicable relationship and thus cannot work together to make financially sound decisions while the divorce is pending, it can be very easy for unpaid bills to pile up and haphazard financial decisions to be made. Work with your spouse and your divorce attorney to maintain control over your finances throughout the divorce process.

Determine Your Joint Bills and Make Sure They Are Paid

This is an important issue for divorcing couples. Your joint bills might include your utilities, your mortgage or rent, your credit cards, and your cell phone bills. If both of your names are on these bills, both you and your spouse are responsible for making sure they are paid every month. Failing to pay a household bill, whether due to vindictiveness toward a former partner or simply forgetting to amid the demands of a pending divorce, can hurt your credit score. Make sure all of your bills are paid, even if your spouse is not holding up his or her financial portion of this responsibility – worry about his or her failure to pay later. Protect yourself from credit consequences now.

Remove Your Spouse from Your Individual Credit Card Accounts

If you have a credit card and your spouse is an authorized user of that card, he or she may use the card while you remain liable for all purchases made. This can easily become a very expensive situation if you have a spouse who uses this to his or her advantage. As soon as you file for divorce, remove your spouse's name from your credit card accounts to prevent any unauthorized purchases.

Continue to Purchase Responsibly

Divorces are expensive. Many people turn to credit cards for everyday expenses when they are facing significant financial circumstances, which can quickly add up and put a cardholder in debt. During your divorce, made a budget and stick to it. Do not live above your means and try to keep your use of credit minimal. If necessary, the court can award a temporary spousal or child support order to cover your needs before your divorce is finalized.

Work with a Kane County Divorce Attorney

When you are working through the divorce process, it is important that you keep a tight grip on your credit and your finances. You are going through a major upheaval in your financial life and in many cases, individuals find themselves broke and dealing with damaged credit scores after they divorce. Prevent this from happening to you by working with one of the experienced Kane County divorce attorneys at our firm. Contact us today to schedule your initial legal consultation with our firm.

Source:

http://www.ilga.gov/legislation/ilcs/ilcs4.asp?ActID=2086&ChapterID=59&SeqStart=6000000&SeqEnd=8300000