How Does a Divorce Impact Your Credit?
Skokie Attorneys Explain the Impact of Divorce on Your Credit
Professional Cook County divorce advice you can depend on
A divorce affects every aspect of your life. The Cook County divorce attorneys of M. Scott Gordon can prepare you for as many eventualities of the process as possible. One of these is the likelihood of credit issues. Some people incorrectly believe that a divorce decree prevents a creditor from coming after one spouse to collect marital debts.
If you and your spouse sign a contract stating that you agree to make certain payments, a divorce decree does not override this agreement. A Skokie divorce lawyer can help you protect your credit.
Protect your credit with divorce help in Niles
You can avoid debt disputes and problems by:
- Communicating with your spouse
- Asking companies and banks to transfer the debt to the responsible party
- Keeping joint bills current during divorce mediation or litigation
- Requesting that creditors remove your spouse’s name from the account, or close joint accounts
- Considering individual consolidation loans to pay off joint bills after the divorce
If your spouse runs up a large amount of debt during the marriage, separation or divorce, cancel as many accounts as you can. The asset division aspect of the divorce process includes a distribution of debts. Your Skokie divorce lawyer at our firm can advise you about how divorce can affect your assets.
Understanding creditors’ rights in divorce
The law prevents a creditor from closing a joint account because of a change in marital status, unless one spouse requests it. You can request that your creditors change your joint accounts to individual accounts so creditors only consider your income, credit history and assets. These accounts do not appear on your spouse’s credit report.
A creditor may ask you to reapply before extending you the same credit as when you applied with your spouse. If you do not work outside the home, work part-time or have a low-paying job, you may be unable to get credit without listing your spouse’s income. Alimony determinations and division of property, including the marital residence, may affect your financial worth and therefore, your eligibility for credit.
Consult with your Skokie divorce lawyer to assess your options and protect your rights regarding creditors’ actions.
Protect your credit with a Cook County divorce attorney
Even when your divorce decree assigns a debt to one spouse, the creditor can hold both responsible for the debts. If your spouse runs up debts and refuses to pay them, your credit history can suffer.
Let Gordon & Perlut, LLC help you. Contact our Niles divorce lawyers online, or call our office at 847.329.0101 . We serve: