How Can I Protect My Credit During My Michigan Divorce?

 Posted on August 03, 2023 in Divorce

Divorce has a funny way of significantly impacting just about every part of your life, including your credit. Of course, many individuals are credit-conscious month-to-month, as maintaining a good credit score can make buying things like a house or a car easier. However, for those getting a divorce, it is crucial to take proactive and aggressive steps to protect your credit during the divorce process in Michigan. Today, we will discuss practical tips and strategies to safeguard your creditworthiness, navigate joint debts, and establish a solid financial foundation for your post-divorce life. Discuss with your divorce attorney how your divorce may affect your credit and seek advice on how to protect it as best you can. 

Know Your Credit Status

Before taking any steps to protect your credit, assessing your current credit situation is 

essential. Obtain copies of your credit reports from the major bureaus and review them for accuracy. Monitoring your credit regularly will help identify any unusual or unauthorized activity during the divorce.

Separate Your Accounts 

As you go through the divorce process, separating your individual finances from your spouse’s is essential. Open separate bank accounts and credit cards in your name to establish your credit history. Doing so can prevent any negative impact on your credit resulting from your spouse’s financial decisions. 

Communicate with Creditors 

Informing creditors about your impending divorce can be beneficial. Make them aware of the upcoming changes in your financial situation so they can provide guidance and assistance. Discuss potential options for modifying or transferring joint accounts to individual accounts, which may alleviate any potential financial burden. 

Address Joint Debts

Debts incurred during a marriage are often considered joint debts, regardless of whose name is on the account. Try and work with your spouse to develop a plan for managing and splitting joint debts. Consider closing or refinancing joint accounts, paying off debts, or transferring them to individual responsibility. Creating an explicit agreement regarding the division of debts can help protect both parties’ credit.

Consult with Professionals 

During a Michigan divorce, consulting with various professionals like divorce attorneys and financial advisors can significantly increase your chances of a more favorable case outcome. These professionals can provide guidance on protecting your credit and help you understand the legal implications of joint debts, property division, and other financial aspects. Meanwhile, your attorney can help to ensure that the divorce settlement properly identifies credit-related matters and protects your financial interests. 

Contact a Novi Divorce Attorney

For the legal aid you need during this time, contact the experienced Northville divorce lawyers with Elkouri Heath, PLC. Call 248-344-9700 for a free consultation. 

Source:

https://www.aarp.org/money/credit-loans-debt/info-12-2012/protect-your-credit-in-divorce.html