Protect Your Credit Rating During and After Divorce
There is so much to think about when you are getting divorced. Many of those thoughts are emotional, while others are financial. When you are going through the financial checklist, remember to zealously guard your credit rating during this most trying period of your life.
Even if you were a stay at home parent during some of your marriage, you will have a credit rating. Keeping it clean, accurate and up to date is something you should do the moment you realize you will have to make your way without your spouse. A good credit rating is paramount when you want to get a mortgage, get lower credit card rates, and establish other lines of credit. Even getting insurance can be affected by a poor credit rating. Increasingly, potential employers will also check on your credit rating when deciding whether to hire you. So it’s hard to overvalue a good credit rating.
So many people fall into a trap during and after a divorce. Maxing out credit cards, paying the mortgage a little late, all those things diminish your credit rating and can come back and bite you later. So make plans from the outset. See your lawyer, set up a meeting with your accountant. Follow through on the game plan you develop. Things you can do to start include:
· Fixing the spending limit on all jointly held credit cards (outright canceling joint credit cards may be a mistake).
· Safeguard all jointly owned bank accounts.
· Make an accurate record of all marital property.
· Get a copy of your last known credit rating and correct anything that may be wrong on the report.
If you plan well, know your options and follow through, at least this part of your divorce can go smoothly and predictably.
