Credit Considerations in Divorce
Among the many factors at play during a divorce, such as custody arrangements, asset division, and support payments, another important consideration involved is that of a divorce’s effect on credit. Whether proceedings are amicable or contentious, certain measures should be taken to ensure that your credit stays intact during and after a divorce. The Nashville divorce lawyers at Martin Heller Potempa & Sheppard PLLC assist Tennessee residents going through a separation plan with preparing for what comes next. In most divorces, the objective is to reach an agreement and resolution that is in each party’s best interest. If you are concerned about credit considerations in divorce, contact our office today to see how we can help.Divorce and Potential Credit Consequences
When a divorce is progressing amicably, both parties can more easily discuss how certain debts should be paid or divided in order to keep each individual’s credit score positive. Most property obtained during a marriage is considered a marital asset. This includes real estate, family businesses, and savings accounts. If a couple agrees, the marital assets may be sold and the debts paid off in order to boost each person’s credit rating and history. Another option may be to divide any bills held jointly and have each individual be responsible for their payments. This option, however, requires a certain amount of trust that each party will fulfill their obligation, which may not be the most secure method in some cases. If one individual stops paying a jointly held bill, creditors may still pursue what is due from the ex-spouse.
To more smoothly handle credit considerations in divorce, there are certain steps that an individual may take to protect their credit before entering into divorce proceedings. First, you should examine your credit report to see where your score is at the beginning. A credit report will let you know which joint debts are outstanding and help you determine how they may be distributed during the proceedings. Knowing your score will also allow you to monitor any changes as things progress. Next, a divorcing couple should take measures to separate their credit, starting by closing any joint accounts. Each spouse should also consider applying for their own credit cards in order to start building a future credit history. Making sure that an individual’s credit is not adversely affected by a divorce involves careful planning and attention to many details. Consulting a knowledgeable family law attorney who can help you plan for different situations may be critical to protecting your financial future.Contact a Divorce Lawyer in the Nashville Area
We rely on good credit for a lot of things, including applying for business loans, renting apartments, or making large purchases like real estate. Credit considerations in divorce thus are important, albeit sometimes overlooked, and the Nashville attorneys at Martin Heller Potempa & Sheppard PLLC can help make sure that these issues receive the attention that they deserve. Our firm assists people who need a family law attorney in Franklin, Belle Meade, Hermitage, and East Nashville, as well as elsewhere in Williamson and Davidson Counties. You can contact us online or call us at 615-800-7096 to set up a free appointment at which you can find out more about your legal options.