Starting your life over after a divorce means having the credit to do so. To protect yourself and your credit during the divorce process, consider the following tips:
Close joint accounts.
If your name is on an account, you are 100% liable for it.
Whether you used that account or incurred any of the debt is of no consequence to the creditor.
Your name on that account means that any derogatory information such as; late payments, charge-offs, or collections, can and will report on your credit report and ruin your credit.
So close all joint accounts and remove yourself from any “authorized user” accounts.
Starting your life over after a divorce means establishing a new “individual” credit history for yourself.
Open a few new accounts solely in your name during the divorce process to begin the process of establishing your credit.
Keep the Lines of Communication Open.
Be practical, some accounts, such as mortgages, cannot be separated or closed immediately after a divorce.
This means that you are left at the mercy of your ex when it comes to things like making mortgage or car payments on time.
Although the court may decree that it is your ex’s responsibility to pay certain loans, the creditors still have your name on the loan and will report all negative marks to your credit file.
For that reason, it is important to make sure that any and all accounts with your name on them are paid on time, even if they are your ex’s responsibility.
Communicate with your ex and make sure that those accounts are being paid, be civil, and protect your credit.