Divorce and separating credit

One of the many aspects of their lives that New York couples have to separate when getting a divorce is their credit. However, there are steps they can take to untangle their credit from that of their spouse and start their new life with no credit issues.

Paying bills that have been incurred with a spouse is necessary in order to have good credit at the end of a divorce. It is ideal if both spouses are able to cooperate with one another as creditors will hold a spouse liable for a debt if the other spouse fails to make the required payments. This will result in the credit of both parties being negatively impacted.

Individuals who are getting a divorce should also begin establishing credit in their own name as soon as possible. This can be accomplished by opening credit cards and bank accounts in their own name.

Having a history of borrowing funds and paying back the debts is almost essential to being able to function in society. A person’s credit rating is used by lenders to determine if they are good candidates for home loans or auto loans. Credit scores are also used by insurance companies to determine how much an individual’s homeowner or auto insurance should cost.

Individuals should be sure to have good credit card practices after their divorce has been finalized and they have established their individual credit history. Credit card bills should be paid off every month, or they risk becoming a source of constant debt.

A family law attorney may assist clients who are getting a divorce by ensuring that their rights and interests are protected during the process. Litigation may be used to obtain favorable terms regarding property division, alimony, child custody and child support as well as the division of any shared debts.