Protecting Your Credit When Getting A Divorce
Going through a divorce can wreak havoc on your finances. As a result, your credit rating could take a serious hit in the aftermath. Find out how to protect yours when going through a divorce in Fort Lauderdale.
Steps To Take Before And During A Divorce To Protect Your Credit Rating
Your credit rating determines whether you can get a credit card, personal loan, or mortgage. It can also impact you when it comes to renting a home or obtaining a job. Unfortunately, while having good credit provides many advantages, maintaining it through the breakup of a marriage and a divorce can prove challenging.
If you are considering getting a divorce in Fort Lauderdale, checking your current credit rating is an important first step. The Federal Trade Commission (FTC) advises that you can safely obtain a free copy from each of the three major credit reporting agencies-Equifax, Experian, and TransUnion-through the website AnnualCreditReport.com.
Once you obtain a copy of your credit report, carefully review it for outstanding debts and any errors that may have been made. Additional steps to take to protect your credit rating before and during your divorce proceedings include:
- Close all joint accounts;
- Make an attempt to pay off outstanding joint debts;
- Consider whether you need to sell certain items that you still owe money on, such as a home, car, recreational vehicles, or other property;
- Make sure all remaining outstanding debts are dealt with in any final divorce orders or settlements;
- Carefully consider how you will support yourself and the types of credit you will likely need after your divorce.
Rebuilding Your Credit After Divorce
Under the Florida Statutes, you may be entitled to spousal support or alimony if you make significantly less than your spouse or sacrificed your own career or education for the sake of the marriage. Getting a reasonable amount in alimony payments can help in protecting your financial security in the aftermath of a divorce. It can also help in rebuilding your credit.
Having enough income ensures your current debts are paid, Nothing is worse for your credit rating than missed or late payments. Other steps to consider taking once your divorce is final include:
- Begin re-establishing your individual credit by opening up a new account or taking out a small personal loan;
- Charge several items and make regular payments on this account;
- If you are unable to obtain a loan or line of credit, consider a secured account, which requires you to deposit a certain amount as collateral;
- Make a budget and stick to it;
- Rather than relying on credit to pay for daily necessities, consider ways to increase monthly income.
Let Us Help You Today
Addressing important financial issues during divorce and getting what you are entitled to in a settlement can help to protect you against future credit problems. To find out how our experienced Fort Lauderdale divorce attorney, contact the office of Vanessa L. Prieto and request a consultation today.