Advice On Protecting Credit After Divorce
Divorce brings lot of financial miseries to life. Some are avoidable and some unavoidable. You can definitely avoid the bad credit history that arises out of divorce. This article provides advice on protecting credit after divorce.
What is a credit history? It is the history maintained by credit card companies that consists of records related to your payment. Your credit history is bad if you have huge sum of money pending with the company. What is the relation between credit rating and divorce? Well many couples have credit card in joint names. But the primary holder of the card is responsible for payment to the company. It might happen that after the divorce takes place you realize that there is a huge bill pending to be paid to the credit card company. The bill consists of the expenses you are not even aware of. As a primary user your credit rating gets bad with the company.
Credit rating is not only limited to credit cards. It is applicable for the credit that you borrow from any other source like bank, or loan companies. Failure to pay any loan generates bad credit history. For instance, Kate and Greg were married for 10 years. During the heydays they bought a house on the beach of Miami. They took a loan of $2, 55, 00 from bank and were jointly responsible for repayment of the loan. Only 3 years had passed and things fell apart between the couple. Kate and Greg were divorced. After this Greg was alone responsible for payment of the huge loan amount. He was in midst of misery.Thus, it is claer that divorce and credit card history can affect mental peace.
Such financial instances are very common in events of divorce. While you are emotionally disturbed during divorce, your thought about financial security probably becomes the last thing on your mind. It is always advisable to take steps if you want to protect your credit rating after divorce.
Advice on protecting credit after divorce:
It is very important to maintain a good credit history during and after divorce. We advice protecting credit rating after divorce because probably you will be needing lot of credit in order to start over again. You might need credit for buying house or vehicle, or enrolling yourself in some educational program. So you have to be in the good books of creditors, banks, and lenders. Credit protection after divorce is hence a necessity.
- Dissolving joint credit cards: If you have credit cards in joint name then exclude the name of your spouse as soon as you start thinking about divorce. If you fail to do it pre divorce then do it immediately after the divorce is over. Check your credit card summary before getting separated from your spouse. Verify the payments made by him or her, and if there is a huge expense then don’t hesitate to ask for payment.
- Discuss about debt payment: Take into account the debt reconciliation when you’re discussing financial settlement with your spouse. This debt can be for buying a house, vehicle, or home interior. A good financial consultant would be able to guide on how to handle debt related issue after divorce.
- Prenuptial agreement: The best way to maintain your credit rating after divorce is to be careful even before you get married. You can include the clause for debt settlement of your prenuptial agreement in event of divorcé. Such clause will hold your spouse legally responsible for sharing any debt liability later.
- Make the payment on time: If you have not taken steps to maintain good credit rating at the time of divorce and a bad credit history is created against you then you should try hard to revive it. The most important step in reviving credit history is to make all the future payments on time.
File for Divorce
Getting a Divorce
Divorce Guide for Men
Divorce Guide for Women
Divorce Child Support
No Fault Divorce
Low Cost Divorce
Cheap Divorce Lawyers
Divorce Court Records
Divorce in Australia
Divorce in Europe