An important factor you should consider when getting a divorce is how you can protect your credit. Oftentimes, spouses are burdened with their spouse’s debt and held liable for charges on their joint accounts. It is important to have your credit and finances to make sure you are in good condition after a divorce. If you are wondering how you can protect your credit after a divorce, contact a trusted Pensacola Family Law Attorney who can help you figure out how to protect your credit.
Should I Close Our Joint Accounts to Protect My Credit?
In a marriage, both parties typically share a joint account. Separating and paying off any joint accounts is a crucial step in protecting your credit. If you co-signed a loan or credit card for your spouse, you are liable for their debt. Although closing a joint account can hurt your credit score, it is better to protect yourself from future liability issues with your spouse. If they are late on payments or are in a serious amount of debt, it can all fall onto you. If you do not close your joint accounts you risk being held liable for your spouse’s debts.
If you don’t have any joint accounts together, you may have given them authorized user status on your credit card. This means that they have access to use your credit card. You must remove your spouse as an authorized user. This will protect you from having to pay for any future charges your spouse tries to make at your expense. It is crucial that you close any joint accounts to avoid being held responsible for any debt your spouse has. Another measure you can take to ensure you are not held responsible for any of your spouse’s financial issues is to change all of your passwords and PINs on credit cards.
Should I Build My Own Credit?
After all of your joint accounts have been closed, you should open your own account. It is a smart idea to start building and maintaining your own credit. If you only shared joint accounts or were an authorized user on your spouse’s credit card, it is important to establish credit in your name. It is extremely important to build your credit as it can help you get things like a loan, car, or property. If you don’t have good credit, it will be harder for you to get these things. If you are wondering what measures you can take to protect your credit during and after a divorce, reach out to a Pensacola Divorce Lawyer who can help you navigate your new financial situation.
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