Do I Need to Protect My Credit with My Divorce?

credit card divorce

When you are undergoing your divorce proceedings, an important factor to consider is how you will be able to maintain your credit. With this being a significant financial strain, protecting your credit is easier said than done. Follow along to find out why you must take the proper steps to protect your credit with your divorce and how one of the proficient New Jersey divorce attorneys at Haber Silver Simpson & Russoniello can walk you through this.

Must I protect my credit with my divorce?

What many people do not know is that your divorce decree will not be relevant to your credit report. So, your agreement with your lenders and card issuers will remain unaffected. This is why it is recommended to negotiate with your lenders and card issuers so that you have a chance to receive a modified plan until you get adjusted to the new financial situation that comes with divorce.

Secondly, you must know that you will remain responsible for the joint debt that you and your spouse share even after the finalization of your divorce. For instance, if you and your spouse co-signed a credit card while you were married, then you are both legally liable for paying off the debts incurred. Failure to do so will result in a diminished credit score.

With that in mind, to protect your credit with your divorce, you must take the following approach:

  1. Document all the financial obligations that you and your spouse have sustained in your marriage (mortgages, credit card debts, student loan debts, medical bills, etc).
  2. Determine whether it is possible to pay off your marital debts by using your joint account.
  3. If not possible, then determine how you will assign these debts to individual accounts.

What are ways that I can protect my credit with my divorce?

Unfortunately, there are instances in which a spouse will intentionally attempt to ruin the other’s finances in the aftermath of a divorce, whether it be through draining a joint bank account or otherwise. So, you must take the proper steps to prevent this from happening. Below are some tips that you may follow:

  • Open an individual checking account that is solely in your name. Deposit your paychecks into this account.
  • Apply for a low-limit credit card. Build your credit by gradually increasing the limit.
  • Change the PINs on your debit cards, along with the passwords and security questions on your bank account websites.
  • Contact your creditors and financial institutions to change your billing address.

Nonetheless, if you require assistance with protecting your credit with your divorce, you must consult with one of the talented attorneys at our Morris County divorce & separation law firm today.

Contact our experienced New Jersey firm

If you require strong legal representation for divorce or family law matters, contact Haber Silver Simpson & Russoniello today to schedule a consultation.