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How Can I Protect My Credit During My Wisconsin Divorce?

Posted on in Family Law

Oconomowoc divorce attorney asset division

For many people, getting a divorce is a very emotional process, but what many people do not realize is that divorce can have a huge impact on their finances. The decisions that you make during your divorce will affect your financial health for years to come, which is why you will want to be sure to prepare yourself for life after divorce as much as possible. One of the things you should keep an eye on during your divorce is your credit score. According to one survey of divorced Americans, 38 percent of respondents said they saw their credit score drop by more than 50 points after their divorce. In general, the act of getting a divorce in itself will not affect your credit score, but actions that are taken before and during the divorce can dictate the effect the divorce has on your credit. Below are a few tips to help you protect your credit during your Wisconsin divorce.

Pull Your Credit Report for Your Review

The first thing you should do is to request a copy of your credit report from all three credit bureaus: Experian, Equifax, and TransUnion. This will allow you to see a complete picture of every credit account that is linked to your name. From here, you can differentiate between your personal and your joint accounts, as well as note on which accounts your spouse is an authorized user. You will want to remove your spouse as a designated user from any of your accounts as soon as possible.

Separate Your Joint Accounts as Soon as Possible

Next, it is crucial that you begin figuring out how to separate your joint accounts as soon as you can. It is extremely important to realize that the terms of any joint credit card accounts, loans, or mortgages that you have with your spouse will not change based on your divorce decree. You will be responsible for notifying your lenders of the divorce and of your intent to close the account. If you do not have a balance, you should be able to close the account as long as you and your spouse both agree to it. However, if you do have a balance, your lender will either require you to pay that balance before you can close the account or you can transfer that balance to a new account in your (or your spouse’s) name only.

Build Your Own Personal Credit

Next, you should work on building up your own personal credit. With divorce comes a slew of life changes. You likely will be changing where you live and you might even have to change what vehicle you drive, too, depending on your circumstances. To accommodate all of those changes, you will need to have good credit so you can apply for a mortgage or an auto loan, or even just to get a credit card in your own name. If you do not have good credit, or you do not have any credit, you should begin by opening up one credit card and paying off the balance each month to get a good start.

Contact a Menomonee Falls Divorce Attorney Today

Getting a divorce can affect nearly every aspect of your life, especially your finances. If you are considering filing for divorce, it is crucial that you understand how the decisions you make now will affect your financial health in the future. Having good credit is important when applying for more credit, so it is important to discuss your situation with a knowledgeable Waukesha County divorce lawyer. At Wolff & Sonderhouse, LLP, we can help you manage your assets and debts during your divorce to ensure you are set up for financial success after the divorce is final. To schedule a free consultation, call our office today at 262-232-6699.

 

Sources:

https://www.experian.com/blogs/ask-experian/credit-education/life-events/divorce-and-credit/

https://www.cnbc.com/select/what-to-do-with-credit-before-divorce/

https://www.debt.com/research/divorce-survey/

 

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