How to Survive a Divorce and Not Ruin Your Credit
Close joint accounts before you separate or divorce to prevent your former spouse from running up charges and leaving you responsible for the balance., Establish separate accounts, such as credit cards, gas cards and retail cards., Arrange new...
Step-by-Step Guide
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Step 1: Close joint accounts before you separate or divorce to prevent your former spouse from running up charges and leaving you responsible for the balance.
Closing accounts is the lesser of the two evils in this situation.
Closing accounts before you separate will make it easier since your spouse is more likely to cooperate with you.
Some financial institutions will require the primary account holder to close the account.
If that's not you, then you're going to need the help of your soon to be ex-spouse. -
Step 2: Establish separate accounts
This ensures that both parties are individually responsible for their own accounts, which is valuable in a divorce.
The crown jewel out of this is you won't have to worry about re-establishing credit on your own...because you will already have it. , You want to avoid paying any new charges your ex-spouse makes. , If you cannot pay off the balance, at least try to close the account to prevent any new charges. , The first thing your attorney will need is a copy of the agreement you signed with the creditor.
There are several legal service plans that are cost-effective for this sort of thing. , The threat of bankruptcy could help your plea.
Just be sure you get promises in writing from the creditor.
Also make sure they will not report or try to collect on the deficiency balance. , -
Step 3: such as credit cards
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Step 4: gas cards and retail cards.
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Step 5: Arrange new individual lines of credit with the same lenders to replace each joint account and transfer agreed upon balances to those new accounts.
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Step 6: Some creditors will require you to pay off the account before they put it in an individual name.
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Step 7: It may be wise to have an attorney involved if creditors refuse to cooperate with you.
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Step 8: Try settling the account with the creditor directly by paying a smaller amount than what is owed.
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Step 9: Pay the jointly held bills yourself--then go after your spouse for the money owed.
Detailed Guide
Closing accounts is the lesser of the two evils in this situation.
Closing accounts before you separate will make it easier since your spouse is more likely to cooperate with you.
Some financial institutions will require the primary account holder to close the account.
If that's not you, then you're going to need the help of your soon to be ex-spouse.
This ensures that both parties are individually responsible for their own accounts, which is valuable in a divorce.
The crown jewel out of this is you won't have to worry about re-establishing credit on your own...because you will already have it. , You want to avoid paying any new charges your ex-spouse makes. , If you cannot pay off the balance, at least try to close the account to prevent any new charges. , The first thing your attorney will need is a copy of the agreement you signed with the creditor.
There are several legal service plans that are cost-effective for this sort of thing. , The threat of bankruptcy could help your plea.
Just be sure you get promises in writing from the creditor.
Also make sure they will not report or try to collect on the deficiency balance. ,
About the Author
Betty Cooper
Committed to making pet care accessible and understandable for everyone.
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