Credit Ratings After Divorce: Protecting Your Financial Options
During a divorce, all parties must play close attention to division of marital assets and marital debt, and consider the impact on their credit rating.

July 20, 2011 /24-7PressRelease/ -- Divorcing spouses have many issues to consider during the divorce process, including spousal and child support, child custody and visitation, and whether the process can be handled through family law mediation. But regardless of the presence of children, substantial assets or other factors, all parties must play close attention to division of marital assets and marital debt.

Starting a new, independent life after divorce can present financial challenges, and it is crucial to ensure that your credit score does not suffer. Adequate credit can help a newly divorced person achieve important goals, including buying a new home or getting an education to improve employment prospects. In these times of shifting economic security, there is no reason to try to move forward hamstrung by financial uncertainty.

The first important step is to be aware of and keep an eye on your combined credit score, a vital piece of information regardless of divorce. Not only will that give you a baseline figure to protect and improve upon, but reviewing each credit bureau's data will provide a ready reference for outstanding debt and the extent of joint accounts.

With all information from Experian, TransUnion and Equifax in hand, spouses can assess whether certain accounts can be paid off and closed, or if one spouse's name should be removed from a particular account. Even if the property settlement agreement in a divorce order obligates one spouse to be responsible for a certain debt, if that spouse does not pay it timely, the credit score of the other spouse may be lowered.

An Illinois family law attorney can explain the importance of protecting credit scores and other strategies to solve the financial challenges of divorce. Illinois law requires an equitable division of marital property upon divorce, and division of marital debt is a fundamental part of that equation.

Credit card balances, outstanding auto loans and home improvement debt contribute considerably to the wealth assessment of most couples. With a diligent and experienced divorce lawyer protecting your interests, you can proceed confidently with the knowledge that you will be able to start over on sound financial footing.

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