Divorce Affects Credit Big Time
Your marriage is about to dissolve in the divorce court. This is a tremendously emotional time in the lives of both partners. Both will need to learn about how financial issues affect each partner. You may want legal advice to help you with these issues.
It is strongly suggested that the financial issues be worked out prior to the actual divorce date. You need to examine the credit reports for each spouse. Any errors should be fixed so that both reports are accurate. Then you can see what credit issues need to be settled.
There are issues if you are responsible together for a mortgage. Home issues need to be carefully managed particularly if there is alimony and child support involved. You may decide to sell the home or to let one partner buy it. That would take care of that joint loan.
You will need to also arrange to have other debts such as cars, credit cards, utilities, etc. in one name only. These are decisions that will need to be made by both of you and are not always easy.
Please know that credit cards should be only in one name. If joint credit card debt is not changed to one responsible party before the divorce, it can occur that credit card companies will go to the party not responsible (according to the decree) for payment. The unpaid debit could go to "collection" and you could start getting those embarrassing phone calls from collectors regarding the payments for the ex-spouse. Poor credit of one affects credit of the other. Take care of this before the divorce.
Determine cash assets, decide on a split of same and close all joint checking and savings accounts. Then open new accounts with one name only. This way, neither partner can access the other's accounts.
It would be very positive if all joint debts could be paid even if some things have to be sold. This would ensure that each partner is responsible for his/her own debts. You want to move on with your life knowing that your financial base is secure albeit smaller than before the divorce.
Your divorce decree will spell out financial arrangements and the party responsible for each debt. However, if there are still joint debts, these can make life miserable if a creditor is not receiving payment and cause problems for the spouse decreed not responsible. Be proactive about this situation.
It is strongly suggested that the financial issues be worked out prior to the actual divorce date. You need to examine the credit reports for each spouse. Any errors should be fixed so that both reports are accurate. Then you can see what credit issues need to be settled.
There are issues if you are responsible together for a mortgage. Home issues need to be carefully managed particularly if there is alimony and child support involved. You may decide to sell the home or to let one partner buy it. That would take care of that joint loan.
You will need to also arrange to have other debts such as cars, credit cards, utilities, etc. in one name only. These are decisions that will need to be made by both of you and are not always easy.
Please know that credit cards should be only in one name. If joint credit card debt is not changed to one responsible party before the divorce, it can occur that credit card companies will go to the party not responsible (according to the decree) for payment. The unpaid debit could go to "collection" and you could start getting those embarrassing phone calls from collectors regarding the payments for the ex-spouse. Poor credit of one affects credit of the other. Take care of this before the divorce.
Determine cash assets, decide on a split of same and close all joint checking and savings accounts. Then open new accounts with one name only. This way, neither partner can access the other's accounts.
It would be very positive if all joint debts could be paid even if some things have to be sold. This would ensure that each partner is responsible for his/her own debts. You want to move on with your life knowing that your financial base is secure albeit smaller than before the divorce.
Your divorce decree will spell out financial arrangements and the party responsible for each debt. However, if there are still joint debts, these can make life miserable if a creditor is not receiving payment and cause problems for the spouse decreed not responsible. Be proactive about this situation.
About the Author:
With unprecedented problems in the credit markets it?s more important than ever to have excellent credit. For more information check out Rob Kosbergs' Detailed FREE Guide on Maintaining and Repairing your Credit Score by going to Bad Credit Repair for your FREE information.
posted by Debt Consolidation Loan at
7:48 AM
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home