Until your divorce is finalized, your spouse can substantially change your credit rating by not paying bills on time or making large purchases without your knowledge if they are an authorized user on any of your accounts, loans or credit cards.
There are several great ways to help you keep your credit rating in good shape.
- If you have a joint account with your spouse, ask to receive a monthly statement from the bank or credit card company.
- Run a credit report to find out if you have any accounts, loans or credit cards you may have forgotten about.
- Speak with your attorney about including “what-if” scenarios in your divorce agreement such as what to do if either you or your spouse are unable to repay your debt. For example, if your spouse receives the car in the settlement, and they default on the payment, outline what will happen.
- Remove yourself as an authorized user if your spouse refuses to remove his or her name from any accounts or credit cards that you both share.
- Try your hardest not to take on additional debt – this can cause a lot of damage to your credit rating. Live within your post-divorce budget and work towards reducing your debt load.
The professionals at Family Divorce Solutions of San Fernando Valley can help you understand how to protect your credit rating during and after a divorce. Reach out to us today to see how we can help!
Alex Weinberger, CFP®, CDFA®, MBA
Alex Weinberger is a Director of Marriage Financial Solutions, and a Vice President at Weinberger Asset Management, an affiliated company providing wealth management and financial planning services to high net worth individuals and Not for Profit Organizations.
Note: This information is general in nature and should not be construed as legal/financial/tax advice. You should work with your attorney, financial, or tax professional to determine what will work best for your situation.