The effects that divorce has on one’s life are countless and can be positive or negative. Because it can affect people emotionally, mentally, physically or financially, divorce can extend to every aspect of life. While the financial part of divorce is often discussed and given a great deal of attention, examining the role of divorce on one’s credit may be overlooked. Those divorcing in Georgia can work with someone in the family law field to better understand the process.
After a divorce, joint accounts can complicate matters. Those accounts that require payments regularly can affect one’s credit if the other party pays late or misses a payment. Canceling a joint account and having it in the name of only one party can prevent this predicament. Dividing shared credit card debts and other financial obligations can be challenging, but the move is critical in order to maintain good credit.
Determining which party will get which marital asset, like the family house, may be difficult as well. In this case, refinancing may be necessary so that those things that were once shared are solely the possession of one spouse, allowing the other party to walk away without damaging his or her credit. Maintaining current payments on bills during the divorce process is incredibly important in order to keep good credit or build individual credit.
Keeping up with every aspect of divorce can be difficult and worrying about how it will affect one’s credit can simply add to that stress. Obtaining assistance from a legal professional in Georgia can help one organize and work through the divorce process in a way that keeps his or her credit in the clear both during and after the divorce. While divorce can be filled with tension and stress, it does not have to leave one financially devastated.
Source: U.S. News & World Report, “5 Ways Divorce Affects Your Credit“, Paul Sisolak, Apr. 14, 2016