As mentioned in Part 1, getting divorced can be a great personal and financial challenge. During the process of negotiating a divorce agreement, it is crucial to ensure that you will be sound financially and not burdened by the debts of your former spouse.
Part 2 will discuss two more methods for protecting your credit during divorce. Consult a financial divorce specialist for the expertise you will need when planning your finances for the future.
Own Credit Cards
Take note of each credit card where your spouse is an authorized user because your spouse will not be responsible for the debts incurred, although still being able to charge purchases. Contact each issuer and request they remove your spouse’s name. In addition, have your name removed as an authorized user from the credit cards of your spouse because you can be included on credit reports related to each account.
Now that you cancelled all joint credit cards, you may need to secure your own credit cards. For those getting their own credit cards for the first time who need to build their credit scores, it is advisable to apply for credit cards with lower limits. Their credit limits can be increased after you have built a good credit score over a period of time. It is also advisable to check your credit reports regularly for any unusual and unauthorized activity.
Change Passwords & Update Information
Securing your financial information from unauthorized access by your spouse must also be done to protect your finances. Be thorough about changing the PIN numbers of debit cards as well as the website passwords for each bank account. If there are security questions, choose those that will be almost impossible for your spouse to know.
After moving to your own residence, diligently send address updates to your banks and credit card companies. This will have a two-fold purpose: Your financial statements will be sent to the right place, and the spouse you are divorcing will be prevented from accessing your personal information.
Professional Guidance for Divorcing Individuals
John Faggio, CPA, CFP®, CDFA™, is a Financial Divorce Specialist. Faggio Financial helps divorcing individuals reach an equitable financial settlement in a professional, cost-effective, and expedient manner.
Faggio Financial does this by providing clients with financial clarity to a process that is inherently burdened with emotional issues and the stressors associated with the legal environment in which it exists. Call (410) 988-7333 for professional guidance today.