An excellent article published earlier this month by Fox Business News outlines some of the pitfalls that dissolving a marriage holds for one’s credit rating. The article makes several points that anyone contemplating an Orange County divorce would be well-advised to keep in mind.
First and foremost – and, it must also be said, unfortunately – it pays to be a bit wary of your soon-to-be-ex while going through the divorce process. “People do unpredictable things during emotional times,” the article notes, citing a credit counselor. It goes on to describe a woman whose husband apparently ruined her credit on purpose by failing to honor a number of bills he had promised to pay.
From the perspective of an Orange County family law attorney, this is a reminder of why care and caution are always important. If a couple holds joint credit cards or other accounts it is critical that there be a written understanding of who will become responsible for what, and equally critical that each party prove to the other that its joint credit obligations have been met. Changing the names on everything from utility bills to in-store loyalty cards can be a surprisingly lengthy and frustrating process. The sooner it begins – and the more carefully each party monitors it – the smoother it is likely to be.
This is one of the aspects of divorce and the separation of assets where you might not think about your Orange County divorce lawyer, despite the fact that he or she can play a critical role. Drawing up legal documents in a careful and thorough manner, and then ensuring that both parties keep up their respective ends of the agreement is one of the most important services attorneys can offer clients. With it can come peace of mind during an otherwise chaotic and emotional time.
Fox Business: How to protect your credit during Divorce