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By LifeAdviceSite.com
 Divorce
is a difficult transition. It can bring with it a range of many
different emotions. It can be painful, scary, or for some, relieving.
It's time-consuming and mentally and emotionally draining. The last
thing you want to have to worry about is your credit, but it should be
one of the first things you think about.
Assuming
you haven't been married to a partner who has already done you wrong in
all ways including financially, there are some things you should take
into consideration before you start divorce proceedings. So often,
people find that in the aftermath of a divorce, their credit has been
ruined. Attorneys' fees and court costs can leave you with depleted
financial assets, leaving one or both spouses unable to pay bills.
Oftentimes a change in lifestyle, a need to switch jobs, or a new
living situation that increases monthly living expenses can be too much
for any budget to bear.
Even
if you are paying your bills on time, you should be aware that if your
spouse or former spouse is unable to meet the financial obligations
they bear, it may be your credit which suffers along with theirs. In
marriage, you are joined legally and financially. If you apply for
joint credit to purchase your spouse's car, and they default on their
payments, your credit will be damaged. If your spouse has a credit card
which they assigned you as a secondary user to, your credit can take a
hit if they send in late payments. If they default on the mortgage for
the house you shared, or neglect to pay the taxes addressed to both
partners, you can be held liable.
Your
credit may also be adversely affected by a spouse who has opened credit
in your name. If you're unlucky enough to have joined your life and
your assets with an unscrupulous character, they may not have an issue
clearing out your bank account and/or using your personal information
such as social security number to set up accounts and obtain credit in
your name. If they default on payments, it could take you years to sort
out.
Even
before you decide to marry someone, and even if you're single with no
plans of marriage, you should be cautious. Check your credit on a
regular basis. There are services that allow you to monitor your credit
so that you will be notified if a new account is opened or an inquiry
is made. Become familiar with your accounts so you will recognize
anything new on your credit report.
If
you're considering a divorce or separation, go through the work of
filing the necessary legal paperwork to separate your assets and
finances so that you will not run the risk of being affected by your
spouse's handling of money.
Even
if you have no reason to suspect your spouse will use your name and
social to obtain credit, put a fraud alert on your credit report so
that you will be notified whenever anyone attempts to apply for credit
in your name. This is a good idea for anyone as it will help protect
you from being a victim of identity theft.
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Copyright 2007-2009 LifeAdviceSite LLC. All rights reserved.
Disclaimer: The creators, administrators and any contributors of this
site and the information herein are not licensed counselors, advisers
or health professionals. Content is intended for informational
purpposes only and not intended to diagnose, treat or cure any
condition, situation or ailment. Content is subject to possible errors
or omissions. You are encouraged to take charge of your own health,
wellness and life circumstances and to conduct your own research and/or
experimentation on any subject matter you have questions or concerns
about. It's your life - live the best one possible every day! |
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Finance Divorce and Credit