As you go through the divorce process, your finances will likely be at the forefront of your mind. It’s hard not to think about money when you’re likely losing a substantial part of your household’s financial security—even if your spouse does not bring in income, the household labor they provide may make it easier for you to focus on work.
As you plan for life after divorce, make sure you are taking care of your credit. Keeping your credit score high can help you as you plan to buy a new home or start new adventures in this stage of life. If you’re looking for more personalized assistance with your divorce, it’s a great time to talk to the team at Nowell Law Firm. To set up a consultation, call us at 864-707-1785.
Know the Terms of Your Divorce
To start, make sure you are crystal clear on the terms of your divorce, particularly when it comes to the division of debts. You may think that your ex-partner is taking on one debt, when the divorce decree actually says it will be your responsibility. By the time you realize that you’ve missed multiple payments, your credit score may have taken a nosedive. Knowing your responsibilities can help you transition smoothly into post-divorce life.
Keep Up with Payments
No matter what, keep up with all debt payments that are in your name. Yes, this is the case even if your divorce decree says that your ex-spouse is supposed to make those payments. The divorce decree is an agreement between you and your ex-spouse, not you and the creditor. The creditor doesn’t care if your ex-spouse is supposed to make payments.
If both of your names are on the debt, they will come after both of you when payments are missed. That means that both parties’ credit scores are at risk. If your ex-partner starts missing payments they are supposed to make, make them to preserve your credit. You can then meet with your attorney to talk about having the ex-spouse held in contempt. This can help you get your money back.
Be Realistic About Your Finances
After a divorce, it’s tempting to live it up and do everything you’ve been holding back on. This is a quick path to credit card debt and mounting bills you can’t keep up with. Instead, be realistic about your budget. Leave plenty of room in your budget for emergencies, savings, and unexpected expenses. Don’t try to stick it to your ex-spouse by renting a lavish home or buying a new luxury car. Luxury purchases will still be there waiting for you once you’ve settled into divorced life and know what you can truly afford.
Use Credit Responsibly to Build Your Score
Use your available credit responsibly to build your score up or keep it high. This means carrying a low balance on your credit cards, paying debts on time, and not closing accounts once they are paid off. A wide range of factors go into your credit score, so spend some time learning about those factors and using them to guide your credit usage.
Consider How to Best Use Your Assets
Perhaps you are walking away from your divorce with a substantial amount of debt. This may well be the case if you have student loans and your ex-partner does not. If you are leaving your marriage with substantial assets, consider how they can best serve you. Perhaps you truly want to keep them, which is a viable option. However, if you have lots of debt, you may want to sell off some of your assets to pay off debt and increase your credit score. If you’re unsure about the best option for you, you may want to meet with a financial planner and discuss different paths.
Discuss Your Family Law Concerns with Nowell Law Firm
A lot goes into a divorce, and with an experienced family law attorney at your side, you can feel confident that you are making the best choices for yourself and your children. Find out how Nowell Law Firm can help you now. Call us at 864-707-1785 or .