South Florida Attorney Eric N. Klein

Managing Your Credit During a Divorce

It is not new information that going through a divorce can be very costly in terms of finance. What is not so widely known is the potential damage to your credit. The problem, which many people fail to realize, is that lenders are not required to honor court decrees which assign responsibility for paying off joint loans to one person. Assuming that you no longer have to worry about your previous financial obligations can lead to missed payments that destroy your credit score.

If a divorce is in the works, or at least being considered, it is a good idea to prepare your finances for a split long before anything actually happens. Joint accounts should be split, and mortgages and car loans refinanced. However, keep in mind that since one person may not be able to shoulder the payments for what once was a two-party loan, it may be more feasible to sell the house or car and split the cash, rather than fighting over who takes responsibility for the loan.

Assume the worst. Divorces can turn ugly very quickly, and it's better to not give a potentially angry spouse any way to get revenge by damaging your credit. To this end, preparations such as converting credit card accounts and applying to opt out of receiving pre-screened credit and/or insurance offers should be made six months to a year in advance.

There are many things to consider and deal with when undergoing a divorce. Let an experienced Boca Raton divorce lawyer from Eric N. Klein and Associates work to safeguard your property, rights, and interests.