How to Keep Your Ex-Spouse from Ruining Your Credit

Divorce certainly leaves a person in worse financial shape than they were prior to a divorce.  The reality is you end up with approximately half the income and assets that you had previously.

As a result, divorce is one of the most common causes of bankruptcy.  Here are some strategies for helping you keep your finances in good shape after a divorce:

1. Get a copy of your credit report.  Make sure to check it for inaccuracies as errors on your report can lower your credit score and increase your interest rates.  You may soon be needing to take out a loan for a new car or house.  
2. Separate your credit from your ex.  This means you need to close any joint accounts that you have.  Cancel any credit cards that are in both of your names.  You should seek an order in your divorce that any loan associated with any  property awarded to your spouse be refinanced to get you off the loan.
3. Examine your debt.  Take a good luck at your debt and your new monthly income and determine whether you can meet your debt obligations.  If you can't, its time to examine your monthly expenses to see where you can save some money.  Otherwise, you may end up filing for bankruptcy which will stay on your credit report for several years.
4. If you file bankruptcy, immediately start rebuilding your credit.  As soon as your bankruptcy is completed you'll want to take out some credit cards and put minimal amounts on them every month and pay them off in full every month to rebuild your credit history.  Many lenders like to loan to post-bankruptcy individuals because they know you cannot file bankruptcy again for eight years.

Jason Pistiner, Esq.
SINGER PISTINER, P.C.
602-264-0110
jp@singerpistiner.com
www.singerpistiner.com