Preparing Your Finances and Your Credit For Divorce

Getting divorced is stressful in itself.  When you mix the hassle of untangling your finances to it.  Well saying its a headache is putting it mildly.   secured credit cardsIn some divorces, each spouse is mature, split the assets and liabilities, and play fair.  But in others, (for instance a family member of mine)  her husband ran up the joint credit cards with cash advances and stopped paying their mortgage without her knowledge.   As they work on finalizing their divorce.  Things have gotten nasty.  Mostly over these money and credit issues.  She went from having nearly had an 800 credit score to a 605 and needing us to co-sign for her new townhouse since she no longer qualified on her own.

Along with the emotional stress of the divorce, there are usually some big financial pressures that cause a bad situation to become even worse. If you want to maintain a good credit score, then you have to put aside your emotional stress to think rationally about how you are going to deal with all the credit and debt responsibilities after you get divorced.

Getting Financially Prepared For Your Divorce

confident girl getting divorcedIt’s important that you take your finances and credit into your own hands.  Even if things look like it will be settled amicably.  It’s better to be safe than sorry later on!

There are a few things that you should keep in mind when you are about to face divorce.  While the final decision on how the debt is split can wind up in the judges’ hands if you can’t come to an agreement.  It’s always best to be prepared for the worst and have a plan ready to manage your credit.   And keep in mind it’s better to NOT have to go thru credit repair or have to rebuild your credit after a divorce if you can possibly help it!

You Got This! Preparing For Your Divorce

  • If there is a credit card that you are a co-signer on, but don’t use.  Try to get your name off it.  Be prepared.  Most banks will require that you pay the card off before they will drop a name from the account.
  • Open your own bank accounts and start depositing your money there.  Before closing your old account.  Review your automatic bill pay and make sure you set up the accounts you are responsible for in your new account.
  • Change all your passwords and Pin numbers
  • Get your credit reports and look for any past due debts.   Just because your’re soon to be ex says they will pay a debt, doesn’t mean they will!  You need to monitor your credit and keep a close eye on your joint accounts.
  • Place a credit freeze on your credit report.  Why?  You don’t want anyone to be able to access your credit report.  With a credit freeze, no one can see your credit report without having the pin number and paying the fee to un-freeze it.  Read more about
  • Credit Freezes Here. 
  • In case of home equity loans, it is possible that the lender will require you to refinance in order to remove your ex-spouse from the obligation.  Tr
  • support during divorcey to decide if you want the house or if it’s best to sell it and split any equity you have in it.
  • Finally.  You aren’t alone.  Rely on your friends and family for support if you need to. Divorce is all too common these days.  Your circle of friends and family are not there just for emotional support.  They may be able to help you navigate the waters of divorce based on their own experiences.

For tips on rebuilding your credit after a divorce.  Read this article  Ex Ruining Your Credit – How to enforce your divorce decree without a lawyer  

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Elizabeth Roberts

Elizabeth Roberts

Liz Roberts and her team are continuously providing information to people who are ready to repair their credit and improve their credit score. Also NewHorizon.org team strives to empower the homebased and small business owners by bringing information that can help them to manage and grow their businesses. Let our 24+ years of business finance experience help you to get the financing you need! CONTACT US if need financing for your business.

7 Comments
  1. I closed the accounts, but the sad part about most of them was the fact that they were signed up with my name and her as a authorized user. There was only one in her name and she wanted me to pay for that one as well even though she left me in debt for the house and over $30,000 in credit card debt. It’s been crazy. I can’t wait until the house is paid off since I didn’t want to refinance that since we are so close to paying it off. So her name is still on it even though we are divorced.

  2. “If you have a joint account then it’s best to close it after divorce”

    This is what got me. We never closed it and it ended up messing everything up.

    • Hi Sean, some people decides to keep the account because they still have joint commitments like children or joint debts. How about you, what’s the reason for not closing the account?

  3. When me and my husband split up my credit was terrible. I had to go through a lot to get it back to normal. Good article.

  4. My parents actually divorced when I was a kid. It costed them both a lot of money for lawyers and the overall case. it was a rough time for the lot of us. It took my mother many years to rebuild her credit, and it took a while for my father as well. This is why it’s so hard to even consider marriage anymore when the possibility of divorce can potentially ruin financial stability.

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NewHorizon.org is an independent, advertising supported website. The owner of the site may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website. NewHorizon.org has not reviewed all available credit card offers in the marketplace.

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