Protecting Your Credit Score During a Divorce

Divorce cracked paperDivorce can open you to new opportunities and responsibilities. Other than handling the case in court, you also need to manage and protect your credit score. Don’t let your past ruin your financial future. Here’s how you can establish a good credit score independently even during a divorce.

Close joint bank accounts

If you and your ex-spouse share a bank account, it’s wise to close them immediately. Other than protecting your personal finances, this also prevents your ex-spouse from adding debts in the account as well as depositing and withdrawing money. To close a joint account, simply phone and inform your bank or creditor.

Freeze all credit files

Do you share a credit card with your ex-spouse, or maybe you can’t close a joint account due to an outstanding balance? If the answer is yes, you can opt to freeze all accounts instead. Freezing credit files hinders any activity from you and your ex-spouse, especially during a divorce case. You can also remove yourself as an authorized user if you have nothing to do with your ex-spouse’s accounts.

Notify creditors about the divorce

Law Office of Gordon N. Shayne and other family law attorneys from Colorado Springs say that it’s important to notify creditors about your divorce to fully protect your credit score. Do this by sending a certified letter to credit card companies, banks, and other lenders. You should also ask them to provide a current account statement to ensure the inactive status of all accounts.

Establish an independent credit

Being financially independent can be tough after a divorce. Improve your credit score again by getting a credit card with a small limit. Also, don’t skip important payments and avoid loans for the meantime so you can rebuild your credit history slowly. It’s important to keep a budget post-divorce to ensure financial security.

If you can, ask the cooperation of your ex-spouse when settling post-divorce finances. Apart from making the process easier, this also ensures financial transparency between the two of you. When doing so, seek the advice and guidance of an experienced family lawyer.