Peace Of Mind For Your Family And Your Future

Be vigilant about credit in a divorce

On Behalf of | May 18, 2020 | Family law

For those who need to start over again after a Delaware divorce, their credit may mean everything. This means that they cannot have it destroyed in the divorce because they may need their credit to start again, including for finding a new place to live. As such, spouses need to be proactive about preserving their own credit as the divorce unfolds.

The first thing that one must do is gather information about all of their accounts and everything that could possibly affect their credit. The goal is to learn about all of the joint accounts that one has with their spouse that could make their credit vulnerable. One should start by requesting credit reports from each of the three major reporting bureaus. Then, one should close all joint accounts with their spouse as soon as possible to the extent that they are able. They may be liable for the debt that their spouse has run up, even if the couple is separated and no longer living together.

Next, the spouse should reach out to creditors and inform them of the situation. While that may not change the picture in terms of responsibility for the debt, it can alert creditors to keep an eye out for suspicious activity. Finally, if there is a large risk to credit from the other spouse, one should consider placing a freeze on their credit until the divorce is final.

Debt is a common issue in divorce proceedings as more American households are carrying a heavier debt load these days. Many times, the couple’s debt will be covered in the divorce agreement. A family law attorney may represent their client’s interests in these negotiations in order to ensure that their client is not saddled with a disproportionate share of the couple’s debt. They may also negotiate a division of assets that reflects how much debt their client must assume.