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Home Home and Family Marriage Protecting your credit during divorce
Protecting your credit during divorce PDF Print E-mail
Written by Mike Mastracci   
When your marriage is on the slide, all too often your credit score takes a hit as well. While a divorce decree ends one type of relationship, your creditors don't want you to leave them, unless it is on their terms. You can take steps to protect your credit during divorce.
by MikeMastracci


When your marriage is on the slide, all too often your credit score takes a hit as well. While a divorce decree ends one type of relationship, your creditors don't want you to leave them, unless it is on their terms. You can take steps to protect your credit during divorce.

To avoid any major hits on your credit report, you need to do something pro-active to weather the financial storm on the horizon. Many financial experts say that woman suffer more in the area of finances than do their male counterparts. This is largely because even today more men are the primary credit qualifier for obtaining mortgages and credit in general. Whether male or female, without a solid credit history in your own name, you won't be able to qualify for refinancing the marital home.

When divorce hits and credit suffers, you are likely to end up with high-interest credit cards and auto loans. Here are a few suggestions to help avoid such quagmires:

. Consider tearing up all your cards.

. Separate joint debt into manageable chunks.

If you're merely a credit card user on your spouse's card, remove your name.

The family home is all to often used as a huge ATM machine and couples often max it out during the marriage, leaving little equity to work with during separation and divorce. Necessity is the mother of invention, so be creative in your spending.

Next to housing, generally auto expenses are one of the larger monthly bills that couples have to deal with. When it comes down to prioritizing what gets paid on time and what gets paid late or not at all, the importance of a vehicle is more pronounced than ever. It sure would be a drag to see your car being towed away by Rob the Repo Guy.

Once the damage is done to your credit rating, it takes a long time and a lot of work to restore it. You may be well advised to use the services of a credit restoration service if needed. The credit repair gurus are salavating these days.

When divorce cripples the family budget, not only does the stress level rise, but so too, does the likelihood of filing for bankruptcy. Despite new laws enacted in 2005 that tightened the requirements for bankruptcy, many people still see it as an easy way out of crushing financial debt. Unfortunately, some spouses also believe bankruptcy will allow them to escape their spousal or child support obligations during or after the divorce; wrong.

Despite the changes in bankruptcy laws in the last few years, it is still pretty easy to walk away from many individual and marital obligations.

About The Author:

If you are involved in a separation and divorce, have concerns about your finances, credit and legal rights get Free Divorce and Financial Information and Resources. It is important to avoid credit problems when you are in transition. At the Divorce Without Dishonor website you can find Free Divorce and Financial Information and Resources

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