Your credit and divorce…how it effects your future.

By Robin Roshkind, Esquire, West Palm Beach, Florida

We all know the importance of a good credit score…without it, you can’t buy a car, get a mortgage, rent an apartment, or even get a good job.

Unfortunately, bad marriages can lead to bad credit for the innocent spouse.  A spiteful shopaholic spouse can run up joint credit card accounts; a business gone bad can incur huge debt; boats and car purchases can put both the husband and the wife into serious debt; so can job loss and not paying bills.

The fact is your credit can be restored after divorce.  Here are some helpful hints to restoring your credit:

1.  Don’t close accounts in your name only.  15% of your credit score is your credit history and 10% is your diversity.

2.  Rebuild your credit with secured credit cards that are tied to savings accounts.  If you put $3000 into a savings account you can charge up to that amount each month.  Then pay it off.

3.  Continue to pay monthly minimums, or even over pay the minimum.

4.  Keep expenses down; do not incur additional debt.

For more information about divorce and credit call one of the attorneys at ROBIN ROSHKIND, P.A. at 561-835-9091 or click on the Firm’s web site at www.familylawwpb.com.

Cleaning up your credit during and after divorce.

By Robin Roshkind, Esquire, West Palm Beach, Florida

The first thing I recommend to clients who are contemplating divorce, is to remove your name from your spouse’s credit card if you are the secondary card holder.  Do this by phone, followed up with a letter. You can also contact the credit card companies and inform them of the pending divorce and ask that all joint card accounts be frozen.  The date of filing for divorce customarily is the cut off date as to what is marital debt.  However, the judge has discretion to otherwise order another date depending upon the case by case facts.

So assuming you or  your spouse has maxed out the credit cards, here is my advice:

1.  Get copies of your credit report from all 3 agencies.

2.  Remove your name from accounts your are secondary holder on.

3.  Remove your spouse’s name from cards you use regularly and pay for yourself.

4.  Be sure to make the minimum payments at the least to keep your credit score up.

5.  If you discover accounts you have no responsibility for or are not an authorized user on, call and write to the credit reporting agency to have your name removed and  your credit report corrected.  Follow up.

6.  Call creditors on your credit report that lists accounts you no longer use.  Ask the creditor to remove your name, but more importantly, to stop reporting your name to the credit bureaus.   

7.  The three credit bureaus are Equifax, Transunion, Experian.

For more information about this subject or other divorce proceedings, click on the Robin Roshkind, P.A. website at www.familylawwpb.com or call for a consultation appointment with one of the attorneys at the Firm at 561-835-9091.