The Money Coach
  • About
    • Meet Lynnette
    • Media Kit
  • Contact
  • Articles
  • Books
  • Coaching
  • Hire Lynnette
  • Money Coach University™
  • The Money Coach Recommends™
No Result
View All Result
The Money Coach
  • About
    • Meet Lynnette
    • Media Kit
  • Contact
No Result
View All Result
The Money Coach
No Result
View All Result

How to Safeguard Your Credit and Finances During a Divorce

Lynnette Khalfani-Cox, The Money Coach by Lynnette Khalfani-Cox, The Money Coach
in Couples and Money
Reading Time: 3 mins read
Lynnette Khalfani-Cox
18
SHARES
308
VIEWS
Share on FacebookShare on Twitter

Learn How To Invest In The Stock Market w/Teri Ijeoma. Click Here to Enroll in the Trade and Travel Program Now. Learn More.

Divorce can be unpleasant, particularly if your breakup occurs past the age of 50. There’s the emotional sting of dealing with a failed relationship late in life, the challenges of dating again and starting over as a single person, and of course, financial issues to tackle.

Unfortunately, money matters can sometimes take a backseat to the personal drama that unfolds during a divorce. If you’re separating from your spouse — or plan to — you need to protect your finances as best you can, especially your credit standing.

Here are 10 ways to safeguard your credit and finances in a divorce.

  1. Close joint accounts immediately

 

Since joint accounts are held by you and your spouse together, both of you are equally responsible for the debt, no matter how it is distributed in the divorce. “If an account is left open, your ex can add more debt, make a late payment, miss a payment or default, and you will also be held responsible,” says Bill Hardekopf, a credit expert and CEO of LowCards.com. “The creditor reports account activity to the credit bureau in both of your names. This affects the personal credit score for both individuals.”

  1. Notify creditors about your divorce

 

After you close any joint accounts, send a certified letter notifying your credit card companies, banks and other lenders about your divorce.

“Ask them to provide a current account statement and tell them that you do not intend to be held liable for any debt accumulated after the date of the written letter,” Hardekopf says. “Request that they put the account on inactive status so no new additional charges may be added, and stipulate that once the balance is paid in full, the account is to be closed completely.”

If your spouse is an authorized user on any of your individual accounts, or you’re an authorized user on spouse’s accounts, each of you should remove the other from the accounts. This will reduce the risk of either party racking up new, unauthorized debts. Again, revoke the authorization on the account via certified mail.

  1. Get monthly statements

For any accounts with outstanding balances, insist on getting copies of the monthly statements sent to you. Do the same thing for any accounts you are unable to close or want to keep open for whatever reason. This way, you’ll be able to keep track of the accounts and know that timely payments are being made.

  1. Don’t fight tooth and nail for the house

 

“A lot of times in divorce, especially for women, they want to stay in the marital home because that’s where they’ve raised the kids and they have emotional attachment to the home,” says Alan Frisher, head of Sage Divorce Planning LLC and co-director of Florida Alimony Reform, a nonprofit that raises awareness about money-related divorce issues.

In times past, clinging to a home post-divorce may have made sense, especially in areas where properties were appreciating and homeowners were building equity. But it’s a far different real estate market now. Older Americans, in particular, are often cash-strapped and dealing with big housing debts.

“Now, you have to be sure you can really afford the home because it’s often more of a liability than an asset,” Frisher says. “It’s not about who will keep the home, but about who will move on from the home. And that’s simply because of the debt surrounding the house.”

Continue reading this article on AARP.org.

Tags: divorce
Previous Post

Are High Priced Colleges Worth It?

Next Post

List of Tuition Free Colleges

Related Articles

mismanaging credit
Couples and Money

Mismanaging Your Credit

by Lynnette Khalfani-Cox, The Money Coach
askthemoneycoach.com
Couples and Money

Splitting Up and Not Married – Whose Money is it Anyway?

by Lynnette Khalfani-Cox, The Money Coach
second marriage
Couples and Money

Getting Your Finances Right in a Second Marriage

by Lynnette Khalfani-Cox, The Money Coach
marriage
Couples and Money

4 Financial Signs You’re Not Ready for Marriage

by Lynnette Khalfani-Cox, The Money Coach
Affordable engagement rings
Couples and Money

Don’t Fall for The Engagement Ring Con

by Lynnette Khalfani-Cox, The Money Coach
Lynnette Khalfani-Cox
Couples and Money

Valentine’s Day Finances: 4 Questions for Couples to Ask Before Marriage

by Lynnette Khalfani-Cox, The Money Coach
Dr. David Ireland
Couples and Money

Your Spouse is Not A Fixer-Upper

by Guest Blogger
Coping With Divorce When He Is The Primary Breadwinner
Couples and Money

Coping With Divorce When He Is The Primary Breadwinner

by Lynnette Khalfani-Cox, The Money Coach
Earl Cox, Lynnette Cox
Couples and Money

Video: Does Your Spouse Spend Too Much Money on Get Rich Quick Schemes?

by Lynnette Khalfani-Cox, The Money Coach
Next Post
tuition free colleges

List of Tuition Free Colleges

All information on this blog is for educational purposes only. Lynnette Khalfani-Cox, The Money Coach, is not a certified financial planner, registered investment adviser, or attorney. If you need specialty financial, investment or legal advice, please consult the appropriate professional. Advertising Disclosure: This site may accept advertising, affiliate payments or other forms of compensation from companies mentioned in articles. This compensation may impact how and where products and companies appear on this site. AskTheMoneyCoach™ and Lynnette Khalfani-Cox, The Money Coach® are trademarks of TheMoneyCoach.net, LLC.

©2009-2022 TheMoneyCoach.net, LLC. All Rights Reserved.

No Result
View All Result
  • About Lynnette Khalfani-Cox, The Money Coach®
  • Books
  • Categories
  • Contact
  • Financial Coaching with Lynnette Khalfani-Cox, The Money Coach®
  • Home
  • Media
  • Online Courses
  • Speaking
  • The Money Coach Recommends

©2009-2021 TheMoneyCoach.net, LLC. All Rights Reserved.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist