One of the most difficult challenges of an Illinois divorce is dividing your marital assets and debts. Any property, money, vehicles, loans, credit card debt, or other financial instrument or asset that you acquired during your marriage must be divided. While property division has to be fair, there is no guarantee that your financial situation after divorce will be easy; divorce is notoriously difficult on a person’s net worth, as well as their credit score. If you are considering divorce, here are three tips for managing your credit as you go through the divorce process.
Get to Know Your Credit Report
Many people do not think twice about their credit report during their marriage, especially if their spouse has good credit and manages the family finances. But this can be risky, especially if you do not have your own credit history. There are many free, easy-to-use resources available for accessing your credit report. Become familiar with every account on your credit report and start finding ways to build your individual credit.
Begin Separating Your Finances Early
As soon as you know you are getting divorced, do what you can to close joint credit accounts and take your name off of debts. Even if you do not consent to spending money on a credit card, if your name is on it, you are still legally responsible for paying it off - even if your divorce decree says your spouse has to make payments! The sooner you can pay off and close joint credit accounts, the sooner you can prevent the risk of being held responsible for debt that you did not accrue.
Negotiate a Divorce Decree that Separates Your Finances Completely
Divorcing couples are encouraged to create a divorce agreement with the help of a neutral mediator. Because couples divide marital debts as well as assets, sometimes a divorce decree will allow credit accounts to stay open under both spouses’ names while one spouse is responsible for paying off the debt. To protect yourself from bad debt and late payments, your best option is to negotiate a divorce decree that minimizes outstanding debt and gives you or your spouse exclusive ownership of whatever portion of the debt each of you needs to pay off.
Contact a St. Charles, IL Divorce Lawyer
While divorce may be difficult on your finances, you can still make careful decisions and plan for the future. For help managing the challenges of divorce, put your trust in the hands of the experienced Kane County divorce attorneys at Shaw Sanders, P.C.. In addition to knowing the ins and outs of Illinois divorce law, we also have a wide network of professionals who can support you in other areas of divorce. Call us today at 630-584-5550 to schedule your first meeting....