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| DIVORCE AFFECTS CREDIT |
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| Written by Rob Kosberg |
| Tuesday, 30 December 2008 11:09 |
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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. It is strongly suggested that the financial issues be worked out prior to the actual divorce date. You need to examine the credit reports for each spouse. Any errors should be fixed so that both reports are accurate. Then you can see what credit issues need to be settled. 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. Determine cash assets, decide on a split of same and close all joint checking and savings accounts. Then open new accounts with one name only. This way, neither partner can access the other's accounts. It would be smart to pay off all your joint debts if at all possible even if some things have to be sold. That way you are then only responsible for your own debts. You want to leave the marriage knowing that you have a secure financial base to start the next phase of your life. Remember that even though the divorce decree spells out the person responsible for debts, this will not negate any joint financial responsibilities which can come back to haunt you if not settled prior to the final decree. Be proactive during the divorce process and get your financial status in order. About the Author: With unprecedented problems in the credit markets it?s more important than ever to have excellent credit. For more information check out Rob Kosbergs' Detailed FREE Guide on Maintaining and Repairing your Credit Score by going to Bad Credit Repair for your FREE information. Kindly provided by LJ-Marketing.dk You are welcome to use this article on your own website, if you include the link just before this text. |
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