When you file for divorce, your divorce decree will include agreements about how to divide your assets and debts. Child custody will be determined and the divorce agreement may also address issues of child support and alimony. How you and your former partner choose to handle your shared debts can have a major impact on your financial life. Schneider & Onofry, P.C. is a divorce lawyer in Yuma, Arizona who may be able to assist you with the process of filing for divorce.
While divorce, in itself, won’t impact your credit score, if debts go unpaid, or if there is any confusion about who will pay debts, this can potentially impact your credit score. Creditors only care about whether or not they get paid; they don’t care who is listed as the payer in your divorce decree. Late payments, missed payments, or non-payment can all impact your credit score. When you file for divorce, you and your ex will generally reach a divorce agreement regarding your shared debts. One or both of you may be responsible for paying these debts. However, if one of you fails to meet these obligations, then both of you could potentially suffer from damaged credit. If you share a joint account with your ex, these accounts will stay on your credit report until they are paid off. Unfortunately, you can’t just turn to creditors and show them your divorce decree. Even if it shows in the decree that your ex is responsible for paying debts, if your name is on the account, you could still be responsible for paying the debt.
So, what are some alternatives to keeping joint accounts open? There are various alternatives. If you and your partner have the assets or the savings, some couples agree to pay off shared debts so that shared debts won’t continue to haunt both parties after the divorce. If you don’t have the liquid assets, sometimes both parties may choose to sell assets, like a house or car, to get the money to pay off shared debts. Another option might be to consolidate debt, or to open new lines of credit and use these lines of credit to pay off shared credit. This can be complex and may require the assistance of a financial advisor.
At the end of the day, there are several options divorcing couples might have if they share debt. The important thing to understand is that the decisions you make regarding your debt during your divorce can have an impact on your life after your divorce is finalized, especially if both parties continue to carry shared debt after the divorce. Schneider & Onofry, P.C. is a divorce lawyer in Yuma, Arizona who may be able to assist you with various complex issues that can arise during the divorce process. You are not alone. Contact our divorce lawyers today to learn more.
What Are Some Things You Can Do To Protect Your Credit During Your Divorce?
If you are getting divorced, now might be the time to seek the assistance of a financial advisor or divorce attorney to assist you with the legal and financial challenges that can arise. Some basic things you can do right away to protect your credit if you are getting divorced can include: closing shared lines of credit, closing shared credit cards, freezing credit reports (to prevent an ex or partner from opening new accounts in your name), and consider working with your ex to find ways to separate and pay off shared accounts.
Divorce can be one of the most difficult decisions you may ever have to make. Disentangling your financial life can sometimes be just as complex as disentangling your emotional life. Schneider & Onofry, P.C. are divorce attorneys in Yuma, Arizona who can help you understand your rights as you navigate the legal and financial questions that can arise during your divorce.
Seek Legal Help with Your Divorce Today
While it is entirely possible to get divorced without the assistance of a lawyer, it is important to understand that the decisions you make in your divorce decree can impact your life for years to come. Your best chance to get it right is when you are filing for divorce. Schneider & Onofry, P.C. is a divorce law firm in Yuma, Arizona who can assist you with every step of the divorce process, from filing paperwork, to finding a divorce settlement that works for you and your partner, to developing a parenting plan that is in the best interests of your children.
Contact Schneider & Onofry, P.C., divorce lawyers today to learn more. USAttorneys.com can connect your with our family law firm in Yuma, Arizona. Divorce can raise many legal and financial questions, but you don’t have to navigate the process alone.