Four Tips to Keep Your Illinois Divorce From Ruining Your Credit

 Posted on February 18,2022 in Family Law

A divorce in and of itself does not have the power to impact your credit score, but many behaviors that are commonly associated with divorce can easily change your financial situation for the worse. Changes to household income, disrupted bill payments, asset division, and debt refinancing can all impact your credit in ways that can affect you for many years to come. Fortunately, there are things you can do to improve your chances of financial success and protect your credit during and after your Illinois divorce.

Be Aware of Debt Payments

Divorce may legally dissolve your relationship, but it does not legally dissolve your obligation to pay your debts. Even if your divorce decree requires your ex to pay certain debts, if he or she fails to do so on time and the debt is under your name, your credit will take a hit, too. If your ex tends to be financially irresponsible, it may be a good idea to try to ensure the debt is refinanced in one partner’s name. Otherwise, you may want to make the payments yourself and try to recover your ex’s portion later.

Close Joint Accounts

Whenever you can, begin separating your shared finances as soon as possible. This can help you keep the money you have and avoid future liability for debt you do not want. While complex financial situations or financial dishonesty may require help from a court, separating your money with the help of an experienced divorce attorney can save you a lot of trouble later on.

Save, Save, Save

While many soon-to-be-divorced individuals often want to go out with friends, start dating again, and start over in a fresh home, a divorce is not a time to spend money. Unexpected expenses frequently occur, and you may have less money for an emergency than you thought you would. Furthermore, managing your finances conservatively can help you avoid the appearance of having or making more money than you really do, which can aid you in your divorce negotiations.

Consider a Financial Restraining Order

Financial restraining orders can be helpful in situations where one spouse’s poor financial behaviors run the risk of seriously harming a family’s finances. Reckless spending, gambling compulsions, and substance abuse can lead a person to spend money without regard for the consequences. Getting a financial restraining order can freeze assets long enough for them to be divided without further harm.

Call a DuPage County Divorce Finance Lawyer

Divorce can have a major impact on your finances, and preparing wisely for divorce can be essential for preparing yourself for future financial success. To learn more about how to protect your credit during your Illinois divorce, call a Lombard divorce finance lawyer with Mevorah & Giglio Law Offices. We have helped many clients successfully navigate their divorce and position themselves favorably for life after divorce is over. Call us today at 630-932-9100 to schedule your free and confidential case review.

Source:

https://www.nerdwallet.com/article/finance/protect-credit-divorce