WSVN — Nobody wants to get divorced, but if your marriage is falling apart, there are things you need to do to protect your finances. In tonight’s Money Monday, Lynn Martinez shares some tips to keep your credit intact while making the split.
When your happily ever after falls apart, so can your credit.
Elizabeth Karwowski, CEO, Get Credit Healthy: “When you’re going through such emotional times, you’re not really thinking about your financial situations.”
Elizabeth Karwowski, a successful credit coach, saw it happen personally when she and her husband split.
Elizabeth Karwowski: “The mistake I made was, I allowed my ex to pay down the debt because he was responsible for it.”
The first thing you need to do, pull your credit report to check for all of the accounts that are in your name.
Elizabeth Karwowski: “I’ve had individuals have their spouses actually open credit cards in their names. So, you want to see what’s out there.”
Don’t forget the credit cards you and your ex shared in happier times. Divorce is a time to cut that connection.
Elizabeth Karwowski: “You could try to call the credit card companies and see if they will remove your name. Many of them will probably say, ‘Just close it out.'”
If you and your ex own a home or condo together, sell it. Make a plan to pay the debt down and separate from those joint accounts as soon as possible.
Elizabeth Karwowski: “Car payments, car loans, anything that you are making a monthly payment on, get your name off.”
Divorce is an overwhelming experience, but getting an early start will save you credit stress in the future.
Elizabeth Karwowski: “Everything nowadays is based on credit. Electricity, credit; going to school, credit; employment, credit. So, it does follow you.”
For more tips on keeping your credit healthy after divorce, log on to these websites.
FOR MORE INFORMATION:
Get Credit Healthy
Kabat Schertzer De La Torre Taraboulos & Co.
Annual Credit Report