Will a Divorce Destroy My Credit?
You may have heard horror stories from those who have gone through a divorce on the destruction that was wrought on their creditworthiness by the split. While some financial strain associated with a divorce may be inevitable, there are steps you can take to protect your credit from taking a serious hit in the Kentucky divorce process.
Avoid racking up an excess of debt
The costs associated with buying or renting a new home and setting up a new household can be expensive. Coupled with the court costs and attorneys’ fees, the financial burden of a divorce can be high. However, try to resist the temptation to rely on credit cards to cover your day-to-day living expenses. Accruing a great deal of high-interest credit card debt is a hard way to begin building a new life on your own. Be sure you take a look at your expenses to find ways to cut back now that you’re living off a single income, and, if needed, seek loans from family members before turning to credit cards.
Make sure your ex is making payment toward joint debts
If your former spouse was tasked with making monthly payments on debts which still carry your name, such as a credit card you opened as a couple, or a mortgage, don’t assume those payments are being made on time each month. Rather than find out when checking your credit that an account has long ago fallen deeply into arrears, check the status of the account on a regular basis, and seek your attorney’s help in compelling payment if your ex has failed to keep up with their obligations.
Regularly check your credit report for suspicious activity
When some divorces go bad, they go very bad indeed. Parties to a divorce have at times been horrified to discover that their ex has secretly taken large amounts of money out of joint accounts, or charged up lines of credit opened jointly for their own purposes. Consider subscribing to a service that will provide you with regularly updated credit reports during this time, and keep a very close eye on your accounts so that you can address suspicious activity as soon as possible. Also, try to take your name off as many joint accounts as you no longer use, so that you will no longer be on the hook for debts your former spouse personally accrues.
For assistance with financial concerns or other aspects of your divorce in Louisville, Kentucky and the surrounding areas, contact the dedicated and compassionate Louisville family law attorneys at John Ruby & Associates for a consultation at 502-895-2626.