DEAL WITH CREDIT BEFORE DIVORCE
Your marriage is about to dissolve in the divorce court. This is a tremendously emotional time in the lives of both partners. Both will need to learn about how financial issues affect each partner. You may want legal advice to help you with these issues.
Finances should be worked out, if at all possible, before the divorce is completed. Credit reports for each partner need to be secured, examined and fixed so that both reports are accurate. When you examine your finances you will e able to see what credit issues need to be decided.
If you are jointly responsible for a home mortgage, you may want to sell the home to a stranger. You can also sell the home to your partner. That makes the mortgage no longer a joint responsibility.
Other decisions will include car debt, loan debt, credit card debt, etc. Such decisions are difficult, but necessary to avoid credit problems post divorce.
When credit cards are in both names, get them changed to one name only. If this is not done and payments stop (even though one of you has been deemed responsible), creditors can come after the other partner. This can lead to going to "collection" and numerous unpleasant collection calls. Eventually this situation can lead back to court battles. You should know that the poor credit of one partner can affect the credit of the other.
Figure out all cash assets and how these will be divided. Do the split, close any joint checking and savings accounts and open accounts in individual names. No one can get to the other's money.
It would be very positive if all joint debts could be paid even if some things have to be sold. This would ensure that each partner is responsible for his/her own debts. You want to move on with your life knowing that your financial base is secure albeit smaller than before the divorce.
Financial arrangements will be specifically written into your final divorce decree including the responsible party for debts. However, if any joint debts remain and the decreed responsible party defaults on payment, creditors may still seek payments from the ex spouse. Take care of this possibility.
Finances should be worked out, if at all possible, before the divorce is completed. Credit reports for each partner need to be secured, examined and fixed so that both reports are accurate. When you examine your finances you will e able to see what credit issues need to be decided.
If you are jointly responsible for a home mortgage, you may want to sell the home to a stranger. You can also sell the home to your partner. That makes the mortgage no longer a joint responsibility.
Other decisions will include car debt, loan debt, credit card debt, etc. Such decisions are difficult, but necessary to avoid credit problems post divorce.
When credit cards are in both names, get them changed to one name only. If this is not done and payments stop (even though one of you has been deemed responsible), creditors can come after the other partner. This can lead to going to "collection" and numerous unpleasant collection calls. Eventually this situation can lead back to court battles. You should know that the poor credit of one partner can affect the credit of the other.
Figure out all cash assets and how these will be divided. Do the split, close any joint checking and savings accounts and open accounts in individual names. No one can get to the other's money.
It would be very positive if all joint debts could be paid even if some things have to be sold. This would ensure that each partner is responsible for his/her own debts. You want to move on with your life knowing that your financial base is secure albeit smaller than before the divorce.
Financial arrangements will be specifically written into your final divorce decree including the responsible party for debts. However, if any joint debts remain and the decreed responsible party defaults on payment, creditors may still seek payments from the ex spouse. Take care of this possibility.
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posted by Debt Consolidation Loan at
3:29 PM
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