Protecting Your Credit Score During Divorce
A Numbers Game
Your credit score is just a number. That number, however, can affect many areas of your life. It can prevent you from buying a car or home, affect your interests rates on loans and mortgages, and can even affect your ability to rent a home or apartment. If you are getting a divorce, these issues matter.
It is easy for a credit score to fall in a divorce. You may fail to pay a bill or may need to use your credit card or extra expenses. It is important to protect your credit score during a divorce. You may need a good credit score to confidently start your new life. Protecting your credit score during divorce doesn’t take a lot of work, but it does take some diligence and good planning. Here are some tips on how to do this:
Communicate About Finances
This is where many couples slip. It is easy for bills to go unpaid when you don’t communicate. This is even truer if there are disputes over who pays what. Make sure that you and your spouse stay on the same page about bills. It is in both of your best interests to maintain healthy finances during the divorce. Early in your divorce, draft up your monthly budget so you both can have the information handy. Don’t just stop there; make sure you confirm bills are paid with your spouse each month. Also, run your credit report so you can make sure there are no unexpected outstanding debts and that you are paying all your accounts.
Resist the Urge to Charge
You may want to consider Divorce Mediation as a lower-cost alternative to hiring two separate lawyers. The cost of mediation is often split between the spouses, and the total cost can be thousands less than an attorney.
Also, think twice about moving out if you cannot afford it. You can mediate your divorce quicker than you can litigate it in court. A quicker divorce means less time living under the same roof.
Your Credit Score and Your Future
Letting your credit score drop during a divorce can hurt you both. In fact, divorce is a leading cause of bankruptcy. The debt you incur during the divorce may need to be divided between you two. And, the more debt you have, the less your marital estate is worth. Asset division in Massachusetts is really about equitably dividing the value of the marital estate. This could mean there is less to go around if you incur more debt.
If you have questions about handling your divorce finances, Mediation Advantage Services can help you.
Polly A. Tatum is experienced in divorce mediation and can help you and your spouse protect your financial interests through cost-effective mediation. Based in historic Worcester with a satellite office in Northboro, MA, our firm serves all cities and towns throughout Massachusetts and Worcester County including, Auburn, Paxton, Leicester, Sutton, Grafton, Shrewsbury, Westboro, Northboro, Southboro, Holden, Sterling, Princeton, Worcester, Charlton, Millbury, Dudley, Spencer, Brookfield, Sudbury, Natick, Framingham, Hopkinton, Milford, Blackstone, Leominster, Fitchburg, Acton, Jefferson, Barre, Oakham, Cambridge, Newton, Marlboro, Lancaster, Bolton, and Hudson. Call our office at (508) 795-1557, fill out our online form, or email us at [email protected] today to schedule your Complimentary Mediation Success Planning Session. You can also sign up for our eNewsletter or download our free e-book for more information regarding divorce in Massachusetts.