Divorce and Credit

Your Divorce and Credit are most likely intertwined if you and your spouse own anything together or have joint accounts. Your credit will determine what you may purchase later, so educate yourself. Read here to find out what you must do:

  • Close all joint accounts (and any of your own individual accounts you will no longer use) and make sure you get zero balance letters from all of your creditors. This is especially important for things like home equity lines, where there could be a line in place that you haven't used. One party could potentially go and take thousands out without the other's knowledge, and since it's still during the marriage, it could still be considered joint expediture.

  • Begin to separate your accounts from your spouse's, because many spouses make poor spending choices while divorcing. Some even run up bills because they think the bills will be split later. You only need a few dollars to open free checking accounts at most banks, so you have nothing to lose. One thing my ex and I did was separate our joint accounts--we did it completely evenly without an argument, and took that money to open the new one. Your choice! But get going.

  • Order your free credit reports by visiting AnnualCreditReport.com

  • Order your free credit score, even though there is usually a fee,you can obtain it here through CreditKarma.com. There is no free trial or anything like that, just credit info, so it's a good pick. CreditKarma will also give you options that are likely to land you future credit, such as credit cards that will probably approve you or banking options. Especially for women, make sure you get some new accounts only in your name, if you don't have any already.

  • Use your own judgment to change your credit report or score as a do it yourselfer. Only YOU and your spouse have the power to impact your divorce and credit in the future, so take action, if necessary.

  • Remember, your divorce and credit will remain intertwined for many years or months if you postpone your divorce. This can have a huge impact on your credit if your ex is making bad financial choices! More on bankruptcy and debt.

Signing up for a credit monitoring service is one way to protect your own credit while divorcing. Some spouses make purchases or open up lines of credit, either jointly or without his/her partner's consent, this is a way to be aware of anything fishy.

Read more on Divorce and Finances here at: Main Finance Page
Read Article #1 on the Finance Series at: Assets Page
Read Article #2 on the Finance Series at: More on Assets
Read Article #3 on the Finance Series at: Budget Page


Disclaimer: The information on this site is for educational purposes only. It is not legal advice and may not apply to your situation. I take the time to gather the best information to those going through divorce, and offer a place for readers to learn, get support and fantastic resources, and find applicable products that are a good fit for them. You can support this site by purchasing high quality products or services from the sponsors I link to.

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