I have seen many clients within a few years of a Divorce. They all have something in common; derogatory records on accounts controlled by the ex-spouse on their credit reports. It seems the courts are very good at dividing assets and liabilities without regard for each individual’s ability to manage them properly.
One of my clients was referred to a Bankruptcy Attorney because the amount of money, with derogatory status on his credit report, and that he was responsible for was $480,000. Only $16,000 was under his direct control; the rest was under his Ex-spouse’s control assigned by the court in the divorce.
My recommendations for couples seeking to divorce is to consider what future each will face financially after the split. It is in the interest of both parties to:
- Payoff and Close all Joint Credit Card Accounts.
- Each party seek to qualify for a mortgage to refinance any real property held by both; if neither can qualify for the loan sell the property, and split the proceeds.
- Auto Loans in the names of both should be paid-off or refinanced individually.
Be good to each other, and make it a great day!