Getting a divorce gives you many things to consider, from who will receive the family home to custody of children. However, one of the most overlooked factors in a divorce regards the credit of those involved. Though it may not seem like it will have a significant impact on your credit score, getting a divorce can disrupt your financial standing. As such, it’s imperative to consult a Los Angeles divorce attorney as soon as possible to guide you through the divorce process. Additionally, the following blog explores the steps you can take to help mitigate damages to your credit score.
Will My Divorce Hurt My Credit Score?
If you are going through a divorce, understanding how this process can impact your credit is critical. The most essential thing to know is that your divorce will not appear on your report. As such, creditors will not know whether or not you are going through this process. The fact that you’re getting a divorce won’t be the factor that impacts your score.
Unfortunately, if you and your spouse share debts and lines of credit, your divorce won’t automatically divide debts. As such, if your spouse stops making payments or continues making purchases using a joint credit card, your credit score can suffer. Similarly, if your ex defaults on a payment, that will also appear on your credit score.
What Can I Do to Keep Myself in Good Standing?
If you are worried about your credit score during your divorce, it’s necessary to understand that there are steps you can take to protect yourself. The most important thing to do is separate or close all joint accounts. For example, if you and your ex share a credit card, you should pay off the remaining balance and close the account or transfer the remainder of the balance to cards only in the name of you or your spouse. This prevents your ex-spouse from running up charges without paying them off. Additionally, you should remove yourself as an authorized user from any accounts your ex wants to keep open. This severs your liability.
You should also open your own checking account and credit cards as soon as possible, as this ensures you have funds available if your spouse turns vengeful and drains the accounts.
Finally, if you and your spouse share log-in information with each other, you’ll want to take the necessary steps to change the passwords, security questions, and PINs associated with these accounts. This helps prevent your spouse from gaining access to your financial information. If you have not done so, change the address listed with your banks and creditors and turn on two-factor authentication.
As you can see, there are many things you must consider regarding your credit score when divorcing your spouse. That’s why you must contact an experienced attorney from the Zitser Family Law Group as soon as possible. Your credit score plays a significant role in where you live, whether or not you can purchase a car, and even if you can get a job in some instances. As such, this is something best left to the professionals. Our firm is ready to help. Call or email today to get started.