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Protecting your credit score in divorce

Divorce can be an emotionally draining experience that touches and changes virtually every aspect of your life. If you are considering a divorce, you have undoubtedly thought about how it can change your family, your address and your assets.

Divorce can also negatively affect your credit, unfortunately. But if you understand possible credit impacts, you can take protective actions to stabilize your financial position.

Understandably, many couples going through divorce are not on friendly terms. Sometimes, one party will try to take financial advantage of the situation by using a jointly held credit card to make cash withdrawals or large purchases without the other party's knowledge.

To avoid that possibility, experts recommend that people pay close attention to credit card statements and bank account activity. For those who fail to monitor both, the cost can be dear; a cost that can include a reduced credit score.

Even better, experts say, is to separate all jointly held accounts, including bank accounts and credit accounts. Remove authorization for your soon-to-be-ex spouse from any accounts you hold.

You and your family law attorney can also begin negotiations on joint debt, as well as joint assets.

Also, it should be noted that you should carefully consider use of credit while going through the divorce process, and whether it is better to sell some assets or use credit to pay for divorce-related expenses such as attorney fees and counseling costs.

Another credit problem people going through divorce can find themselves facing: failure to make payments on things such as utilities, mortgage and autos. When you miss or skip payments, you can wind up damaging your credit score, which makes it more difficult and more expensive to borrow in the future.

You can discuss more ways to protect yourself financially when you sit down with a Nashville family attorney experienced in property division disputes.

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Stanley A. Kweller, Attorney at Law
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Nashville, TN 37201

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