May 27, 2016
Not only can divorce leave you in rough shape emotionally, it can also exact a substantial toll on your financial health. Many of those recently divorced find that their credit score took a major hit during and after their divorce. Unfortunately, this tends to come at a time when someone building a new life needs a robust credit score most of all, to support the purchase of a new home after moving out of the one shared with a spouse, or to qualify for a lease on a new apartment. Fortunately, there are signs that divorced spouses can watch for, and steps they can take, to avoid suffering a major blow to their credit. Read on to learn more.
Keep a careful watch on your credit score
While some divorces are relatively amicable, some can get downright ugly. One way this can rear its head is by an ex using a former spouse’s name and personal information to open lines of credit for themselves, or by charging up additional debt on joint accounts that you may not be carefully tracking. In order to prevent as much damage as possible to your credit, consider subscribing to a credit monitoring service for a time, to allow you to learn quickly if any unwanted accounts have been opened.
Track whether jointly-owned accounts are being kept up to date
If your former spouse has been allocated the responsibility to make payments on any accounts which still bear your name, such as a credit card or mortgage, make sure that you regularly check on the account to ensure that it’s fully paid. Many former spouses assume that their ex is taking care of the bills that have become their responsibility, only to discover to their dismay that this isn’t the case when trying to obtain credit elsewhere.
Don’t take on more debt than you can handle
While you’re dividing property between yourself and your spouse, keep in mind what your new budget will be when living off only a single income. You might not be able to afford to keep both a car with a substantial payment due each month, as well as a house and the accompanying mortgage. Either decide to sell expensive assets you can’t afford, or leave those to your ex. Additionally, keep track of debt you accrue during the divorce process, and try not to become too reliant on your credit cards. Consider asking a family member for a loan to help you with the costs of a divorce, rather than letting high-interest debt pile up.
If you are in need of compassionate, knowledgeable legal assistance with your divorce in Kentucky, contact Florence family law attorneys at Greta Hoffman & Associates for a consultation, at 859-535-0264.