Credit and divorce may be two of the most challenging issues most of us will face. Some of the most valuable divorcing tips are those that involve protecting credit. Few couples truly are aware of how much their credit matters can affect them during and after divorce, or whether there’s anything that can be done to address this problem.
Planning ahead is important when it comes to credit and divorce. If you want to protect your credit, you’ll need to address your debt and separate your accounts from those of your soon-to-be ex.
An important divorcing tip to remember: While removing your ex from your credit and closing your accounts is a good idea, it doesn’t make debt disappear. The accounts aren’t really “closed” until you have paid off the balance, and your creditors can and will pursue both you and your ex for any outstanding balance if both of your names were on the account.
Credit and Divorce: Steps You Can Take to Protect Your Score
In order to protect your credit, you and your spouse should try and work out your credit issues between the two of you. Although some couples find that they cannot get along and are unable to come to mutually acceptable agreements, it can be worth a try to seek mediation or collaborative divorce. With these methods, you and your spouse may be able to decide which of you will pay for each debt.
This can be particularly useful for the larger loans, like home mortgages and car loans, because it can take time to address these debts. You can decide to sell the home and/or car, to refinance in your or your spouse’s name alone, or choose other options.
Divorcing Tips: Dividing Debt
In cases where the spouses cannot agree ahead of time, the court can decide how the debt is to be divided and will write the decision into the final divorce decree. Usually, the court will attempt to divide the debts evenly, in much the same way as it divides assets.
Contacting a Virginia Beach Divorce Attorney
There are very specific rules governing divorce in Virginia Beach, and some of those address credit issues. To get divorcing tips and more, Hofheimer Family Law Firm will provide you with the experience and compassion you deserve and the successful results you need to move on with your life. Request a FREE copy of our divorce guide for women in Virginia or reserve your seat at our monthly divorce seminar. Call 1-757-425-5200 to speak with a Virginia Beach divorce attorney about credit and divorce issues.