Whenever a couple gets divorced, there is a high probability that it will impact each spouse financially, at least to some extent. Between property division, child support, alimony, and more, a lot of financial factors come into play. That said, one of the things spouses often don’t think about is how their divorce may impact their credit. That said, though divorce does have a potential to impact your credit, there are certain measures you can take to limit this impact. Please continue reading and reach out to a seasoned Los Angeles divorce attorney from the Zitser Family Law Group, APC to learn more about what you can do and how our legal team can help ensure your financial situation is solid after your divorce is finalized.
What can I do to protect my credit from a divorce in California?
Fortunately, there are several steps you can take to mitigate the impact that a divorce can have on your credit score. Just some of those steps are as follows:
- Familiarize yourself with the law and how credit works. The first thing you should understand is that if you get divorced, it will not appear on your credit score. For many, this is a sigh of relief, however, you should know that this doesn’t mean it won’t impact your credit. For example, if you have any jointly-held credit cards that have racked up debt, you will still be on the hook to pay off that debt, even if your spouse is technically the one who racked it up. If it continues to go unpaid, it will significantly harm your credit score.
- Cancel jointly-held accounts. For this reason, you need to strongly consider canceling all jointly-held accounts and having the spouse responsible for racking up the debt transfer the debt over to a card in their own name. This way, you’ll be off the hook for paying it.
- Get a credit card in your own name. Once jointly-held credit cards are canceled, ensure you open a credit line in your own name, if you don’t already have one. This can help you start building your own credit.
- Open a new checking account. During your divorce, you should strongly consider opening your own checking account and depositing money in that account. Though this still may be subject to equitable distribution, it will at least prevent your spouse from withdrawing from the account and ruining your finances.
Contact our experienced Los Angeles firm
For the qualified, dedicated legal representation you and your family deserve and need through any family law or divorce matter, contact Zitser Family Law Group, APC today.