Divorce can balloon into several different but related problems, most commonly credit issues, and bankruptcy. As discussed in a previous post, these issues are serious but are manageable with quick and decisive action. This post will continue with the final three tips on ways to protect your credit during a divorce.
A typical problem during divorce occurs when your ex-spouse objects to selling joint assets. The biggest asset for most couples is their home and, at the same time, their biggest liability is the mortgage. Keep in mind that moving out of your home does not absolve you from responsibility for that loan. Typically whoever remains in the home can refinance the loan in their name, and that will release the other spouse but make sure to discuss this with your attorney.
Keep a close eye on your credit report, missed bills and payments are only part of your credit score. Make sure that you are doing everything you can safeguard your credit. Now that you are single-income again, it is critical that you maintain access to credit markets if necessary. Additionally, if you are having trouble paying a bill don’t be afraid to call your lender and ask for a payment modification. Most lenders would rather avoid the trouble of foreclosing a debt and will be willing to cooperate with you.
As you can see, divorce implicates far more than your personal life. A divorce can affect your professional life, financial stability, credit rating and more. Don’t take divorce lightly; it will change your future. A lawyer can help you identify those issues unique to you and recommend ways to which you may avoid them. Take control of your life and avoid the pitfalls common in a divorce.