One of the unfortunate side effects of divorce that many divorce lawyers see their clients dealing with after the fact is a damaged credit rating.
Ending a marriage can turn your finances upside down if it’s not handled correctly with the help of a divorce attorney who can advise you on how to properly deal with your finances and protect your credit.
How can you keep your credit score intact while going through a divorce?
Protect yourself using these helpful tips and the services of an experienced lawyer who can help you keep your credit unscathed through a divorce.
1. Get A Credit Report Copy
Your divorce attorney will likely recommend that you immediately purchase a copy of your credit report so you have a record of your current credit rating along with a list of all single and joint accounts being tracked.
This report will show any outstanding debt that should be resolved during the divorce process.
2. Keep Paying Debts
Whatever you do, keep paying off debts while the divorce is in progress.
Just because you are working with your lawyer to divide joint finances and debt does not alleviate you from making payments until the divorce is concluded.
Changes in your financial record can sometimes cause a temporary drop in credit scores, so be sure to keep all payments up-to-date to prevent your score from dropping any additional points due to late or missed payments.
3. Close and Divide Financial Accounts
A large part of getting through the divorce details will involve working with your divorce attorney to properly divide marital finances in a way that will not damage your credit rating.
Unless otherwise prohibited by a temporary restraining order (TRO) or Standing Order in some Texas counties, begin this part by closing any unnecessary financial accounts as well as any joint accounts and open new ones in your name only in which to deposit your current income payments.
If a TRO is filed along with a divorce petition, you may be unable to remove any of your assets until the divorce is finalized.
4. Make Debt Payment Part of the Settlement
If there is debt that needs to be resolved during the divorce process, your lawyer may suggest making debt payment part of your overall settlement.
Texas is a community property state, which means it’s also a community debt state.
Making the payment of each of your shares of remaining marital debt a part of your settlement ensures that you both handle your portion to protect yourself in the event your ex-spouse does not live up to his or her part of the payment settlement.
5. Start Rebuilding Right Away
After your debt and financial accounts are divided and a debt settlement plan is made, it’s time to start rebuilding credit in your own name.
Divorce lawyers find that taking out a credit card in your own name and keeping all other payments up-to-date can help with that.
After a little while, any negative effects you’ve suffered from opening and closing accounts as well as transferring balances should resolve and let you build your own personal financial record.
Keep Your Credit High During Divorce
A successful divorce involves many factors, one of the critical ones being dividing any assets or debts.
To prevent damaging your credit and make it difficult to move on after the divorce is finalized, divorce attorneys suggest that you make credit preservation a key part of your financial planning.
By working with an experienced lawyer who understands the importance of managing credit throughout the divorce process, you can come away with a good understanding of your credit rating and what needs to be done to keep it growing after the end of your marriage!
Garza & Elizondo, LLP
680 East St. Charles St, Suite 600
Brownsville TX 78520
Meetings With Attorneys By Appointment Only
2395 La Palma Street, Suite A
San Benito TX 78586