If you are going through a divorce, you should consider what measures you can take to protect your credit during and after a divorce. It is important to have your credit sorted and protected to ensure you are in good standing after a divorce. It is common for spouses to be left burdened with their spouse’s debt. You can be held liable for any late or large payments on joint accounts. If you are curious about what measures you should take to protect your credit during and after a divorce, you should reach out to a dedicated Memphis, Tennessee Family Law Attorney who can assist you in ensuring your credit is protected.
Should I Separate My Joint Accounts and Remove Authorized-User Status?
If you are going through a divorce, whether amicably or not, you should separate your accounts immediately. It is common for spouses to share a joint account where they share assets and responsibilities. This means both spouses have access and power to this account. You should immediately close all joint accounts. If you do not close these accounts, you could be held liable for your ex-spouse’s debt and financial issues. If they do not make payments on time and frequently make large purchases, it will reflect negatively on their credit. The only downside to separating your joint accounts is that your credit score may drop. It will only drop temporarily, as you can build your credit back up once it is separated.
It is also common for married couples to have authorized user status on an account if they don’t have any joint accounts. An authorized user is someone who is legally permitted to use another person’s credit card. If your spouse has authorized user status, you will need to revoke that privilege right away. This measure will help you protect your credit in the future from any liability for your ex-spouse’s debts. By separating and revoking authorized user status, you are protecting your credit during and after your divorce.
Should I Open My Own Account?
To protect yourself from any debt or financial issues your spouse incurs, you should close out any joint accounts and open your own. It is an extremely smart move to start building and maintaining your credit. As mentioned above, closing a joint account can negatively impact your credit score. Opening your own account will help you raise it back up. It is important to establish credit in your name. If you are wondering what measures to take to protect your credit during and after a divorce, contact a devoted Shelby County, Tennessee Divorce Lawyer who can help you move in the right direction financially.
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If you require strong legal representation for matters of divorce and family law in Memphis or anywhere in Tennessee, contact Rice Law to schedule a consultation with one of our experienced attorneys today.