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2003 by Mark Carney,
First American Debt Consolidation and Loans
Divorce has become a sad
reality in many western cultures. With all of the emotions that
surround this event finances can often become overlooked. However, sooner or
later an individual will have to confront the fact that a divorce can
have a major impact on their financial status. Failure to take proper
precautions now may result in damaged credit and high levels of debt down
the road. Here are some prudent steps to protect your finances.
Protect Your Credit
- Separate joint accounts. Although this may not always be
possible this is certainly the best course of action. If both
parties agree, they can contact creditors and transfer the
balances to individual accounts. This would preserve your credit
in the event that your spouse does not make payments.
- Make sure payments are made. If you are unable to separate a
joint account then your credit is tied to whether or not the
payments are made. The fact that a court has ordered your
ex-spouse to pay does not change this fact. If they refuse to make
payments you may have to pick up the slack.
- Address your mortgage situation. If you have joint ownership
you may want to consider a refinance to remove your spouse from
the mortgage. Another option would be to sell the home and split
the proceeds.
- Establish individual credit. If all of your credit has been in
the form of joint accounts establish an individual account to
begin building good credit in your name.
- If necessary, seek out a professional mediator. Such
professionals will help secure an equitable settlement and protect
the rights of each party.
- Avoid bankruptcy. During this stressful time it is easy to
think of bankruptcy as a quick and easy way to solve all of your
financial problems. Be aware that a bankruptcy can stay on your
credit report for up to 10 years.
- Make sure child support is paid. If you have been ordered to
pay support do it. Not only is it the right thing for your
children but it can also get you in trouble with the law if you
don. t. If you are supposed to be receiving child support then
make sure that you are. If necessary you can contact an attorney,
social services or private agencies to help you collect. In some
cases this money can make the difference between whether or not an
individual is able to meet expenses without going into debt.
(1)
(1) http://www.divorceinfo.com/childsupportcollectlawyer.htm
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About the author:
Mark Carney is a professional consultant with
First American Debt Consolidation and Loans, a debt consolidation
service specializing in financial education,
credit counseling, and debt management services
nationwide. |
