Divorce is often accompanied by more negative consequences than a person can count. Psychologically, a person who has recently gone through a traumatic divorce can have a difficult time dealing with their feelings of loss, regret, and failure. Additionally, many people who are going through or who have gone through a divorce, begin to have financial difficulties. Paying legal fees, dividing assets, and paying spousal or child support are expenses that most people do not save to pay for. Thus, a person could suddenly find themselves in dire straits when it comes to paying bills and keeping up with their new unforeseen expenses.
On top of all of this, a person’s credit score could be negatively affected by a divorce. Following are several ways in which a person can keep their credit score from plummeting:
Joint Bank Accounts
Most spouses have joint bank accounts, mortgages, and credit cards. Under many circumstances, the account will continue to stay in both names during and/or after the divorce. Usually the spouse who is not the primary account holder will purposely stop paying bills so that the primary account holder’s credit will be negatively affected. In order to make sure this does not happen to you, it is best to:
- Freeze the account pending resolution of divorce
- Remove your former spouse from the account
- Close the account and re-open it in your name only
One Spouse Objects to Selling Joint Assets
During divorces, disagreements regarding selling joint assets are more common. When it comes to a home, which is usually a person’s most expensive asset, if one spouse declines to sell the house, then both parties listed on the mortgage still have to make payments or their credit will be negatively affected. If one spouse moves out of the house and the other stays, the person who remains should refinance their mortgage in their own name. Generally, once the home is refinanced in your name, legally and financially your ex-spouse no longer has anything to do with the property.
Rebuilding Credit After a Divorce
No matter how well you manage your finances during a divorce, you may need to rebuild you credit. Once your joint accounts are closed, open new ones and begin rebuilding your credit by:
- Controlling your spending
- Creating a budget and strictly following it
- Tracking your spending and borrowing
- Learning about good financial habits or consulting an advisor
Baltimore Divorce Lawyers at the Law Offices of Allyson B. Goldscher, LLC Help Our Clients Come Out on Top Financially After a Divorce
If you, a loved one or someone you know is going through a divorce, get in contact with the experienced Baltimore divorce lawyers at the Law Offices of Allyson B. Goldscher, LLC. Our dedicated and experienced team understand the financial impact that a divorce can have on your finances and credit and how to avoid it from happening to you. Call us at 410-602-9522 or contact us online.
Our offices are conveniently located in Stevenson, Maryland so that we can easily serve clients throughout Baltimore County, including Baltimore City and Stevenson.