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How to protect your credit during a divorce

On Behalf of | Sep 27, 2022 | Divorce

Divorce isn’t usually an enjoyable process. If your divorce isn’t amicable, then it’s not unusual to get caught up in the drama and emotions of the situation. 

This often leads to financial issues taking a backseat to all this. However, you need to make sure you take steps to protect your financial situation and credit during and after a divorce. 

Close your joint accounts

Joint accounts are held by you and your spouse, and you are both responsible for the debt. If you leave joint accounts open, your ex may take out more debt, make late payments, or miss a payment, and you can be left as the responsible party. The creditor will report activity in your accounts to both of you if your joint accounts are open, which can cause your credit score to take a hit. 

Request monthly statements

If you have accounts with an outstanding balance, request monthly statements from the creditor. Do the same thing for accounts you can close or want to keep open. It’s important to keep track of what you owe and when payments are due. 

Avoid revenge shopping and spending binges

If you are going through a divorce, you may try to “get back” at your ex by going on a shopping binge with a joint account. This is always a bad move. Maintain your typical spending habits and avoid overspending. If you waste money during a divorce proceeding, you will likely have to pay all the debt you accumulate. 

Protecting your credit during a divorce

You have to take control of your financial situation when you file for divorce. You have legal options and property division laws to help protect you, but once it is finalized, you are on your own regarding maintaining a good credit rating.