Pay attention to your credit while divorcing in California
Gain insight on how to protect and build your credit as you are going through a divorce.
There is a lot to think about and consider while going through a divorce in the state of California. Make sure you take out some time and energy to devote to sorting out your finances during this time of your life, especially your credit score and standing. Doing so is sure to give you a better chance of starting the next chapter of your life on the right financial and emotional foot.
Get a copy of your credit score
One of the very first things you will want to do during your divorce is get a copy of your credit report. You might have to apply for a loan or seek out other financial assistance during the divorce process, so you want to see whether there are discrepancies or mistakes on your report that might hinder you from being approved.
Something else to keep in mind is the fact that you want to make careful financial moves while getting a divorce. The process can be just as much of a drain on your finances as it is on your emotions, and you want to think carefully about how you spend your money. Even if you have a solid credit score and credit report now, that can all change during the legal proceedings. Talk with an attorney to get an idea of how much you can expect to spend on your divorce and how to cover all necessary costs.
Set up your own credit
Depending on how long you have been married, all your credit card accounts might be in your and your soon-to-be-ex-spouse’s name. If so, you should go ahead and establish credit in your own name by opening an account. Just as you would during any other time you are applying for credit cards, pay close attention to interest rates. Additionally, bear in mind how your income and lifestyle might change once your divorce is finalized.
Figure out who is responsible for what
If you and your soon-to-be-ex-spouse did have shared credit cards, figure out who is responsible for what debt. Be sure you make an agreement that you both can easily stick to. Know that if one of you misses a payment, it is going to impact both of your credit scores. To keep from racking up even more debt, have the credit card issuer close the account at the beginning of your divorce.
It is an undeniable fact that finances are a huge part of a divorce in California. Besides these tips, be sure to enlist the expertise and experience of your attorney to protect your credit and the rest of your finances as well.