How Can I Protect My Credit During a Los Angeles Divorce?

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Going through a divorce be an overwhelming and emotional time for those involved. While you may be mourning the loss of your marriage, it’s essential to prioritize protecting your credit during these challenging times. Unfortunately, one poor judgment call by a spiteful spouse can impact your financial future for years to come. As such, the following blog explores what you should know about these matters and why it’s in your best interest to connect with an experienced California consumer lawyer if you have concerns about your credit.

How Does Divorce Impact My Credit?

It’s important to understand that filing for or finalizing a divorce will not impact your credit. However, the steps you take during the divorce to separate joint financial accounts can protect or hurt your credit.

California is a community property state. As such, all marital property, or anything that was obtained during the duration of your marriage, will be split evenly between the two spouses. However, this property doesn’t just refer to your assets – it also encompasses your debt. As such, you and your spouse will be responsible for any debts accumulated during your marriage.

If your spouse fails to make payments, it can reflect negatively on you, as they are joint debts. Additionally, if your spouse racks up credit card charges on a joint card, you can be held liable. Failure to make payments can hurt your credit score.

What Can I Do to Protect My Credit Score?

If you are worried about your credit during your divorce, there are steps you can take to shield yourself. The first thing you should do is request a copy of your credit report to determine what accounts are in both your names and which ones are solely in yours. Once you have done this, you have a few options.

Your first option is to close the account. To do this, you will pay off the remaining balance before asking the lender to deactivate it. This ensures you can start fresh without the worry that your spouse will take advantage of this. If your spouse is an authorized user on any credit card rather than a joint owner, you should have them removed from the line of credit.

When it comes to more considerable debts, you may want to use these as leverage during negotiations. For example, if you wish to keep the family home, you can take on your spouse’s share of the mortgage so they are debt-free, which can be enticing. As such, you would have to refinance the loan in your name only. This helps ensure your spouse is no longer responsible for the debt and therefore, cannot damage your credit score.

If you are having issues with your credit during a divorce, it’s in your best interest to speak with an experienced attorney with Los Angeles Legal Solutions. Our team understands how overwhelming these matters can be, which is why we will do everything in our power to help you through these issues. Whether your credit reports are incorrect and still include your spouse’s debt or they are taking advantage of your lines of credit, we can help. Connect with us today to learn how we can fight for you.

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