Divorce is not an easy process. However, your credit and finances necessarily have to suffer while you are in the process of a divorce. We have worked with numerous clients who had murky divorce cases. Included below are some helpful dos and don’ts of protecting your finances and credit through the divorce process:
Financial dos during Your Separation or Divorce Process
- Do hire a reputable divorce Attorney (In some cases, you may need to hire both a real estate attorney and divorce attorney, depending upon your real estate portfolio)
- Do close all your joint accounts immediately, including credit cards prior to your divorce proceedings
- Do sell your properties that you jointly own or refinance the co-borrower out and quit claim the co-borrower off the title
- Do include to settling and paying off your joint credit card accounts in your divorce decree
- Do change your will and insurance policy, which can be included in the divorce decree
- Check your credit before and after your divorce. You can check your credit at these reputable sites Equifax, Experian or MyFICO
Financial Don’ts During Your Separation or Divorce Process
- No representation equals no results or agreements
- Don’t hire an expensive attorney you cannot afford
- Don’t stay on title or jointly keep the mortgage which you are liable for the debt, as the borrower or co-borrower during and after the divorce. Here is an example: A past client divorced her second husband almost 15 years ago, he was on the mortgage and title. Shortly after the divorce, my client gave her ex-husband a lump sum that would relieve her from him obtaining any interest in the real property or proceeds if she sold the home. My client did not go back to her divorce attorney to execute a release of liability, which was a huge mistake. Later, her ex-husband denied ever receiving payment as the divorce decree stated, my client was sloppy of keeping her records and payoff, she also changed her bank which she did not keep any records of and the exchange was executed outside of court. After 15 years later, the ex-husband took my client back to court and forced my client to sell the home and take a partial amount of the proceeds which the divorce decree stated. In other words, my client’s ex-husband doubled dipped in the disbursements he received from my client because he knew my client was sloppy in keeping records and took advantage of her carelessness.
- Don’t foreclose on your property, hire a reputable real estate agent to price to sell your property very quickly
- Don’t file bankruptcy, try to avoid bankruptcy, work with your creditors as much as possible.
- Protect Your Credit During Divorce
- Quitclaiming Your House to Your Ex-Spouse Could Tie Up Your Credit for Years
- Your Credit Score Evaluation
- Your Credit is Your Report Card for Everything
For more information on how we can best fix your personal credit after a divorce locally in Palm Beach and Jupiter, please fill out the online contact form about your concerns or give us a call at 855.477-9007. Read what people have to say about First Pro Capital on our Testimonials page.
Allow our team of professionals to assist you!