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Repairing Your Credit After a Divorce

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Most people feel financial struggles as they go through a divorce. In fact, oftentimes, the financial challenges are a major factor in the decision to obtain a divorce. Following the separate, there may be child custody payments, spousal support payments, and the equitable division of marital property. Along with these legal matters can be the need to find a new home, purchase new furniture and household items and create an entire second set of clothing and items for your children. Your credit score may have been negatively affected following these financial disruptions. Learning how to repair your credit after a divorce can help ensure that you maintain or regain your financial security.

Bankruptcy or Divorce

If you are in a serious financial situation, you may be considering bankruptcy. Some people wonder if it is better to file for bankruptcy prior to a divorce or after a divorce. It is important to note that a bankruptcy will only affect your credit and not your spouse’s credit if you make the decision to file prior to divorce, however, your bankruptcy may be place on hold (called an “automatic stay”) during a divorce so that the division of marital assets can first play out before the bankruptcy is completed. Bankruptcies will never discharge legal obligations such as child support or spousal support ordered by the court, under Section 523(a)(5) of the Bankruptcy Code. Therefore, if your intent was to try to eliminate those obligations, it will not be legally allowed. There are many factors to take into consideration, and every person’s situation is different. Contacting an experienced attorney can help you make this important decision.

Repairing Credit After a Divorce

If you are struggling financially following a divorce, you are not alone. There are several steps that will help you repair and restore your credit score and your financial health following a divorce.

  • Create a budget and stick to it. There are ways to find budget spreadsheets and tools online for free. Learn now how to save for your future and ensure financial security.
  • Make sure to monitor your credit score. While you are allowed to check your credit score from all three agencies once a year for free, consider whether or not you would like to pay to be able to check it year round to ensure no mistakes or fraud is on your credit report.
  • Any debts you had with your spouse should have been handled within your divorce and the division of assets. If you still have joint debt make sure to stay up on payments to ensure your credit score is not impacted.
  • If you are a woman, consider changing your last name prior to applying for any new credit cards or loans. This will not affect your credit score, however, it is a wise decision as you move forward financially to ensure all of your accounts have the same name.
  • Do not fall prey to marketing tactics offering credit cards for high interest rates. Slowly obtain any additional credit and make sure you have the means to pay it off.

Let Us Help You Today

If you are considering a divorce, contact an experienced Fort Lauderdale divorce attorney at the office of Joyce A. Julian, P.A. at 954-467-6656 or visit us online to schedule a free consultation today.

 

Resource:

law.cornell.edu/uscode/text/11/523

https://www.joycejulian.com/divorce-contested-vs-uncontested/

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