With so much going on in the divorce process, it can be easy to overlook how this life event is impacting one’s credit. While it is easy to lose sight of one’s credit score in divorce, this is far from a small matter. In Texas, a struggling credit score can significantly impact one’s ability to buy a vehicle, purchase or rent property, or even secure certain jobs. For many people, these are all very important steps in starting over after divorce, so taking steps to safeguard one’s credit is a good idea. Here are some things that can be done to minimize the impact:
- Contact all three credit bureaus to freeze credit reports, thereby preventing an ex from tampering by opening phony accounts or other fraudulent acts.
- Divide and shut down joint accounts as soon as possible, especially those where a spouse could run up debt such as a credit card, and open personal accounts instead.
- If only one spouse remains in the marital home, consider refinancing so the mortgage is in their name alone.
- Settle joint debts. Selling shared assets can help with this.
While the above-listed steps are a good idea when one’s marriage is coming to an end, they may not all be possible to complete right away. Therefore, it is important to make all payments on time, especially those to joint accounts, and to maintain as polite a relationship as possible with the ex to avoid any vengeful moves. It could also prove critical to speak with a Texas family lawyer before taking any drastic steps, including adjustments to one’s mortgage or splitting assets.
