How Can I Protect My Credit with My Divorce?

credit cards divorce

Divorce is not only an emotional strain, but it can also be a financial strain. With becoming independent for the first time in a while, you must prioritize protecting your credit. Read on to discover how you can protect your credit with your divorce and how one of the seasoned Hudson County family law attorneys at Greenberg & Walden, LLC, can help you in achieving financial independence.

Are there ways to protect my credit with my divorce?

You must acknowledge that just because you are parting ways with your spouse does not necessarily mean that you will be absolved from your debt. That is, if you co-signed a credit card with your spouse during your marriage, then you are legally responsible for paying off the joint debts that have been incurred on the card. Failing to do so will ultimately hurt your credit score.

Importantly, your divorce decree will not appear on your credit report, and thus your agreements with lenders and card issuers will remain unaffected. So, it is recommended to, if necessary, negotiate with lenders and card issuers for a modified payment plan until you get adjusted to your new financial situation.

With that being said, to protect your credit with your divorce, you must first document all the financial obligations that you and your spouse have sustained in your marriage. This may include, but may not be limited to, mortgages, credit card debts, student loan debts, medical bills, etc. Once all your marital debts have been identified, you must determine whether it is possible to pay them off using your joint account. If not, then you must determine how you will assign these debts to individual accounts.

What are other ways I can protect my credit with my divorce?

It is best to take extra steps of precautions when protecting your credit with your divorce. Below are additional pieces of advice:

  • Open an individual checking account in your name. Begin depositing your paychecks into this account.
  • Apply for a low-limit credit card. Begin building your credit by gradually increasing the limit.
  • Change the PINs on your debit cards.
  • Change the passwords and security questions on your bank account websites.
  • Change the billing address with creditors and financial institutions.

In the unfortunate event that your spouse intentionally attempts to ruin your finances (i.e., draining a joint checking account), then you must take immediate action to correct this. One of the competent attorneys at our boutique New Jersey law firm located in West New York can step in for this. Pick up the phone and give us a call today.

Contact our Firm

If you need assistance with any family law issue, contact Greenberg & Walden, LLC today.

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