Tag Archive for: credit score

Divorcing? Get Your Credit Report

Starting the initial steps of a divorce can feel overwhelming. You may be unsure what processes to prioritize or how to set yourself up for success. One step you can take now is requesting a copy of your credit report. 

This can aid you in your next steps as you start to move forward financially after the property division process. 

Why Do You Need Your Credit Report? 

Your credit report offers a summary of your credit activity, including loans and other debts. It includes information such as your:

  • Bill payment history
  • Bankruptcy history
  • Loans
  • Current debts

When you apply for loans or other financial opportunities, the financial institution will view your report to determine your trustworthiness and eligibility. If you have a significant amount of debt or a history of late payments, it may deny your application. 

Requesting a copy of your report can help you prepare for certain financial processes in your divorce, such as refinancing your mortgage or applying for an apartment rental. If this report paints a negative picture of your finances, you can start taking steps now to improve your credit or explore other opportunities that won’t hinge on your creditworthiness. 

You can also identify any hidden debts or assets that will eventually come to light during the marital dissolution process. If you find any discrepancies in your report, potentially indicating malicious behavior from your spouse, you can address them now. 

Protecting Your Credit During and After Divorce

Divorce can have indirect consequences on your credit score, which could limit future financial opportunities. Years of marriage and combined finances can be challenging to untangle. These tips may help you protect your credit during the divorce process:

  • Keep an eye on your report. Free copies are available online, allowing you to quickly identify any changes or issues. 
  • Close credit cards and pay off loans wherever possible. 
  • Change the account numbers on the remaining accounts so your spouse does not accidentally or maliciously use them. 
  • Put a lock on your credit so your spouse cannot open any new accounts under your name. 

If your score is on the lower side, take steps now to begin building credit. You might apply for a secured credit card, practice making bill payments on time, and reach out to a credit counselor for help. 

How To Request a Copy of Your Credit Report 

You should never need to pay for a copy of your credit report. You can request a free report as often as once per week through AnnualCreditReport.com, a service authorized by federal law. 

You will need to answer a few personal questions before you can see your reports. This ensures that no one else can access your information aside from you. 

Let Karen Ann Ulmer, P.C., Help You Protect Your Finances During Divorce

Legal separation and divorce can strain your finances. At Karen Ann Ulmer, P.C., we help clients protect their rights while divorcing. Let us guide you through the settlement agreement, divorce petition, alimony discussions, and more. Call (866) 349-4149 to schedule a general consultation.

by

Congratulations! Your Divorce is Final! Now What?

,

A divorce starts a new chapter of your life. But even after it’s final, your life will not turn on a dime, especially if you share children with your ex-spouse. There will be loose ends to tie up and details to address. Where do you start? 

What’s in Your Divorce Agreement? 

The divorce agreement is part of your divorce order. It will require you and your spouse to do certain things by given dates. Some things are time sensitive, like changing property titles and deeds. 

Compile a list of what needs to be done and when, and calendar each task. You must honor your end of the bargain and keep track of your spouse’s obligations, so if they miss a deadline you’ll know about it.   

If you have a qualified domestic relations order (QDRO), it’s a court order that may require one of you to share your retirement savings with the other. It’s often part of the process that divides spouses’ assets, and their requirements are time-sensitive. 

Will You Need Health Insurance? 

Unless you’re old enough for Medicare, have health insurance from your employer, or already purchased it yourself, you’ll need health coverage. If you got it through your spouse’s employer, you could continue it through the COBRA process for up to three years. This is probably pretty expensive, so you might just want it to be a bridge to more affordable coverage. One option may be an Affordable Care Act (ACA) plan or a policy you buy from an insurance agent. 

If you have kids and your ex-spouse gets medical benefits from work, maintaining that coverage is probably the best option. If not, COBRA or the ACA may be good options. 

What’s Your Credit Score? Is it Getting Better or Worse? 

Protecting your credit score will allow you to borrow money and get lines of credit at the lowest interest rate possible. Here are post-divorce steps you can take, according to AARP: 

  • Close joint accounts: Your ex-spouse may run up debts and be late with payments or not pay at all. Inform creditors of your divorce and that you’re not responsible for further debts. 
  • Get monthly statements: If joint accounts have outstanding balances, these statements will show you’re making timely payments. 
  • If you move, file a change of address notice with the U.S. Postal Service: If you don’t get a bill, you won’t pay it, and that will harm your credit score. If you pay bills online, getting monthly statements or changing your address won’t be issues. 
  • Use credit cards wisely: Don’t engage in binge “retail therapy” shopping if you feel depressed. You’ll only feel worse when you get the bill, and your credit score will suffer if you don’t make payments on time. 
  • Regularly check your credit reports: See if there are any errors or problems caused during your marriage or divorce. Take action if you find them. 
  • Freeze your credit files: Given your spouse knows your Social Security number and other critical information, you may fear they may engage in identity theft. If so, a credit freeze should prevent any new accounts from being opened in your name 

Be proactive because preventing financial problems is easier than unwinding them after they happen. 

Have You Updated Your Estate Planning? 

If you had estate planning done during your marriage, you likely named each other as your primary beneficiaries. You probably don’t want your assets going to your ex now, though you may feel they can handle being a trustee for a trust that benefits your children. Make sure your estate plans accurately reflect your wishes.

Is Your Divorce Over, But You Still Need an Attorney? 

We will fight to protect your interests and work to ensure you’re in the best position possible after your divorce is final. Contact Karen Ann Ulmer, P.C., Attorneys at Law, for a free consultation so we can discuss your situation and how we can help. 

by