It Is Important to Protect Your Credit in a Divorce
Divorce can take its toll on many areas of your life. One of the most important areas is your finances. While a divorce is supposed to be fair and your assets should be dispersed equitably, there still could be situations that cause concern over your credit score. Remember that your credit history is an accumulation of your financial history. It includes the time that you were married and making joint purchases and investments. It is necessary to protect your credit in a divorce so that you do not end up with a lower score than you should.
One important thing that you can do once you have decided to divorce is to separate your finances. This is usually easier said than done. The first step is to identify all of your assets and debts. Next, determine the current value of your property as well as what you owe. Neither party should remove or sell any assets until the divorce is complete unless both parties know about it and are in agreement.
Dissipation of Marital Assets
When one partner squanders the community property before the divorce is final it is sometimes known as dissipation or waste of marital assets. This may be done through spending money on a paramour, paying for a drug or gambling habit, or otherwise improper spending. As part of the divorce procedure in Arizona, a preliminary injunction is put into place that forbids spouses to remove assets from the estate without a court order. To further protect your finances during a divorce you may need to request a temporary order from the court to freeze certain assets.
It is helpful for everyone to check their credit scores and history on a regular basis. Those who are divorcing should review a copy of your credit report for accuracy. There could be some mistakes on it, which can be cleared up. You can follow up later, after your divorce, to ensure that everything remains correct. You will be able to find out quickly if your spouse has caused any problems that need to be resolved.
Establish New Credit
After a divorce you need to establish new credit. Make sure that you close any accounts that are in both names, to the extent your Divorce Decree allows you to, and take out new accounts in your name alone. If you plan to return to your maiden name, you should get a new social security card and make all the necessary changes on all other documents. The divorce process can be complex so it is usually helpful to seek assistance from a qualified family law attorney. Contact the skilled legal team at Udall Shumway to request a consultation today.
This blog should be used for informational purposes only. It does not create an attorney-client relationship with any reader and should not be construed as legal advice. If you need legal advice regarding Protect Your Credit in a Divorce, or any other family law issue, please feel free to contact Sheri D. Shepard at 480.461.5300, log on to udallshumway.com, or contact an attorney in your area. Udall Shumway PLC is located in Mesa, Arizona and is a full service law firm. We assist Individuals, families, businesses, schools and municipalities in Mesa and the Phoenix/East Valley.