DEAL WITH CREDIT BEFORE DIVORCE
When you are about to file for divorce, you know that this is a horrible experience no matter how much you want to do it. There are things you both need to know about and deal with when considering your financial issues. Legal advice may help with this.
The recommended time to do this is prior to the finalization of the divorce. You should examine credit reports of both partners. Fix any errors. Continue to deal with the rest of your finances.
If you are jointly responsible for a home mortgage, you may want to sell the home to a stranger. You can also sell the home to your partner. That makes the mortgage no longer a joint responsibility.
Other decisions will include car debt, loan debt, credit card debt, etc. Such decisions are difficult, but necessary to avoid credit problems post divorce.
Credit cards in both names should be changed to one name. Should this not be done and payments to credit card companies stop, it is possible that the companies will insist on payment from the other spouse. The debt could end up in collections and result in messy collection calls. Such a situation can lead back to court and get nasty. Be aware before something negative happens that the poor credit of one spouse can show up on the report of the other, even if divorced.
Figure out all cash assets and how these will be divided. Do the split, close any joint checking and savings accounts and open accounts in individual names. No one can get to the other's money.
It would be smart to pay off all your joint debts if at all possible even if some things have to be sold. That way you are then only responsible for your own debts. You want to leave the marriage knowing that you have a secure financial base to start the next phase of your life.
Remember that even though the divorce decree spells out the person responsible for debts, this will not negate any joint financial responsibilities which can come back to haunt you if not settled prior to the final decree. Be proactive during the divorce process and get your financial status in order.
The recommended time to do this is prior to the finalization of the divorce. You should examine credit reports of both partners. Fix any errors. Continue to deal with the rest of your finances.
If you are jointly responsible for a home mortgage, you may want to sell the home to a stranger. You can also sell the home to your partner. That makes the mortgage no longer a joint responsibility.
Other decisions will include car debt, loan debt, credit card debt, etc. Such decisions are difficult, but necessary to avoid credit problems post divorce.
Credit cards in both names should be changed to one name. Should this not be done and payments to credit card companies stop, it is possible that the companies will insist on payment from the other spouse. The debt could end up in collections and result in messy collection calls. Such a situation can lead back to court and get nasty. Be aware before something negative happens that the poor credit of one spouse can show up on the report of the other, even if divorced.
Figure out all cash assets and how these will be divided. Do the split, close any joint checking and savings accounts and open accounts in individual names. No one can get to the other's money.
It would be smart to pay off all your joint debts if at all possible even if some things have to be sold. That way you are then only responsible for your own debts. You want to leave the marriage knowing that you have a secure financial base to start the next phase of your life.
Remember that even though the divorce decree spells out the person responsible for debts, this will not negate any joint financial responsibilities which can come back to haunt you if not settled prior to the final decree. Be proactive during the divorce process and get your financial status in order.
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