Divorce has the power to impact every aspect of your life, especially your finances. Protecting your credit during your divorce will help to secure your financial future after your case is settled. What steps can you take now, to ensure that your credit doesn’t suffer later?
Why Your Credit Score Matters
Your credit score is one of the most important factors to consider while planning for your life after divorce. A higher credit score can make it easier to apply for loans or refinance your mortgage. Protecting your credit can even lead to lower interest rates, as well as better financial opportunities.
Protecting Your Credit during Divorce
There are many ways to protect your credit during divorce. Some of the most common methods include:
- Closing, separating, or freezing all joint accounts
- Create an index of your properties and assets, so you can better monitor these accounts
- Keep current on all of your bills throughout the duration of your divorce
- Track your expenses, make a budget, and stick to it
- Monitor your credit report and financial accounts, and address any discrepancies
Divorce is tough. Worrying about your finances during divorce can make the situation much more stressful. While you may not want to address these tough issues now, it will pay off in the long run.
Improving Your Credit after Divorce
Divorce is a major life event, and it will impact your finances. Transitioning to a single income household, coupled with support payments and legal fees, can make it hard to improve your credit rating. Fortunately, there are steps you can take to rebuild your credit after divorce.
- Sign up for credit monitoring programs and set up alerts
- Continue to stick to the budget you made during your divorce proceeding
- Open new credit accounts in your name, and remain current on your payments
- Make sure you have been removed from joint accounts with your ex, so you aren’t held responsible if they go into default
Rebuilding your credit after divorce is a marathon, not a sprint. Just because you took measures to protect your credit early on, doesn’t mean that it won’t take a hit as your case drags out. Adjusting your finances to your post-divorce life takes time, but keep it up. You’ll get there!
Hiring the Right Attorney
Hiring a divorce attorney may not seem like a method for protecting your credit during divorce, but it is. Your lawyer will have your best interest in mind throughout your case, and that includes your finances. An experienced divorce lawyer has the skills and capabilities to get you the financial settlement you are entitled to, which can help protect your financial future.
For more information on the financial aspect of divorce, contact the law firm of Brian D. Perskin & Associates P.C. at 718-875-7584 today!