Often, going through divorce can be hard on your finances and credit. Some of the damage is inevitable for most couples because the same amount of money you were earning in one household now has to stretch to support two, and it can be a difficult adjustment.
Some financial problems from divorce happen because bills don't get paid during the divorce process, or one party doesn't live up to his or her obligations after the final decree. People in the process of a divorce hold off on paying bills until the divorce court appoints one spouse responsible for the particular marital debt.
A divorce lawyer can work with you to protect your financial future. Speak with a local divorce attorney today by calling 877-349-1310 or filling out the divorce case review form below.
Dividing up credit card balances can be especially costly. Late fees and interest continue to mount while the couple is waiting for a court order, and late payments can seriously damage your credit score. Even after debts are divided by the court, one party may fail to make payments as ordered.
Where joint accounts are involved, this can hurt the finances and credit scores of the spouse who isn't responsible for the debt. The divorce court doesn't have the power to erase your obligation to credit card accounts or other creditor on joint accounts in divorce.
Although recent changes to the U.S. Bankruptcy Code have provided some protections when a former spouse files for bankruptcy protection, legal hassles and credit damage can occur while you're enforcing your rights. Many people find themselves in financial distress after divorce. Some try for a fresh start by filing for bankruptcy.
Whether you're dealing with mortgage payments and debts or just getting used to supporting yourself on a single income, you'll likely have to think about rebuilding credit and establishing credit independence after divorce.
If you've monitored your credit report regularly and understand what impacts your credit scores, this process will probably be second nature to you; however, if you've never given much thought to your credit scores or credit report, now is the time to start.
The first step is to order copies of your credit report from all three major credit bureaus. You can obtain free credit reports from each bureau once a year, but monitoring your credit report on a regular basis is critical.
If most or all of your accounts have been joint accounts with your spouse, you'll want to establish separate credit and start working on improving your credit scores. This can be difficult if your credit report has taken a hit during the divorce process and your household income has decreased dramatically as a result of the separation from your spouse.
You may not qualify for the best interest rates, but that doesn't mean that you have to fall victim to predatory credit card companies whose introductory fees will eat up most of your available credit and further damage your credit scores by making you look maxed out right from the beginning.
Are you going through a divorce and have a lot of debt between the two of you? Filing for Bankruptcy might be a solution for you. Fill out the form below or call 866-607-9207 to discuss your financial situation with a local bankruptcy attorney.
The above summary of finances and divorce is by no means all-inclusive and is not legal advice. For the latest information on divorce and finances, speak to a divorce attorney in your area.