A divorce is not just the end of a relationship with your spouse; it is also the dissolution of a financial partnership. If you are not careful, your divorce could destroy a good credit score that you have spent years working hard to achieve. Fortunately, there are ways for you to protect your credit throughout the divorce process.
By working with your attorney, you may be able to prevent the actions of your spouse from damaging your credit:
- Remove each other as authorized users – You will likely want to remove your spouse as an authorized user on your accounts. This prevents him or her from charging debt to your account that you will become responsible for repaying to the creditor. You should also consider having yourself removed as an authorized user from your spouse’s accounts to prevent any potential damage to your credit rating if these accounts become delinquent or amass considerable debt during the divorce process.
- Close all joint accounts if possible – This can sometimes be difficult especially if the joint account that has an outstanding balance. But keep in mind if joint accounts are left open, your ex-spouse can add more debt, make late payments, and take other actions which may damage your credit. While it may be important to ultimately close the joint checking and savings accounts, you may not want to do so unilaterally before talking to your divorce lawyer.
- Freeze all joint accounts that can’t be closed – If you are unable to close a joint account due to an outstanding balance, you may want to request that a freeze be placed on the account to prevent additional charges. Keep in mind that you and your spouse will still be responsible for making payments to these accounts after they are frozen.
John Heilbrun has been handling high asset divorces for people in the Cincinnati area for more than 30 years. He understands how easy it is for your credit to be damaged during the divorce process, and he will help you avoid the pitfalls which are likely to make this danger a reality.
Please contact the Law Office of John Heilbrun today to schedule your initial high asset divorce consultation. Mr. Heilbrun serves clients in the Cincinnati, Ohio area including Hyde Park, Blue Ash and Lebanon.