Most people understand that getting divorced will impact their finances. No matter what a person’s financial situation may be, it is nearly impossible for most people not to see some kind of impact as a result of a divorce. One thing that experts say is often negatively affected is a divorced person’s credit score. This is not because being divorced directly influences a person’s score, but because divorce can have financial implications that cause a credit rating to drop. Fortunately, experts also say that there are ways for those in New York who are facing divorce to prevent that from happening.
The first thing those individuals getting divorced should do to protect their overall finances is obtain their credit report. They need to see precisely which of their financial accounts are listed on or linked to their credit report. Joint accounts between spouses mean that both people are financially responsible for them, but any accounts that have the other spouse listed as an authorized user need to be noted as well. For the ones that are shared, both spouses will have to agree to close them, which may be a better option than trying to determine who is ultimately responsible for the account.
Next, creditors of remaining accounts need to be notified that the owner has changed his or her marital status. If the account still has a balance, the creditor may be able to determine a payment plan or the owner could have the debt refinanced onto another account. In some cases, a person getting a divorce may want to freeze his or her credit to prevent an angry future ex-spouse from opening accounts in the spouse’s name in retaliation.
The best thing that someone facing divorce can do is make sure to consult divorce professionals, such as a financial advisor or an attorney. An attorney in particular can assist those here in New Jersey by making sure that all aspects of a divorce proceeding are carefully considered and that each party is treated fairly. It could be the first step toward a new future that offers financial peace of mind.