The divorce process alone can set you back financially, but the aftermath can take an even bigger toll. Although a divorce may not affect your credit score directly, it can indirectly through events such as having to split up joint accounts. Read on to see how you can protect your credit during your divorce and how a Nassau County divorce lawyer at Barrows Levy PLLC can support you through this process.
How do I protect my credit during my divorce?
If possible, it is best to maintain a civil relationship with your former spouse during the divorce process to avoid any pitfalls with your finances. For instance, being amicable will allow you to work together to pay off and close existing joint accounts in the best approach possible. You will also be able to document any and all financial obligations incurred during the marriage, such as mortgages, credit card accounts, medical bills, and student loans, and outline what you owe for each account, whose name is on the account, and whether any of them are past due. If paying off these joint accounts is not possible, it is best to convert them to individual accounts and designate them accordingly. So long as your name is on an account, it is important that you make sure that payments are made on time. Aside from this, another great tip for protecting your credit is to monitor your credit reports frequently.
Also, during the financial distress of your divorce, it may be in your best interest to negotiate with lenders for a modified payment plan until you get back on track. An important note is that your divorce decree has limited power when it comes to your agreements with lenders and creditors. A divorce decree may specify who is responsible for accounts opened during the marriage, but it does not break contracts with lenders. If your spouse is unable or unwilling to pay what they are responsible for and the contract has not been changed by the lender, the late payments will still appear on both credit reports and will have a negative impact on the credit score of both you and your spouse.
If you need assistance with protecting your credit during your divorce process, do not hesitate in reaching out to a Nassau County divorce lawyer today.
Contact Our Experienced Nassau County Firm
Barrows Levy PLLC is a dedicated New York law firm focused on providing quality legal services to clients in New York City and Long Island. If you require a lawyer who has notable experience handling family and estate planning matters, we are available to help. Contact Barrows Levy PLLC to schedule a consultation with one of our experienced attorneys today.