Couples in South Carolina who are getting a divorce will have many factors to consider as part of the process. Despite inevitable concerns about child custody, property division and support, personal finances should not be ignored. Before getting divorced, there are steps to take regarding credit.
A survey of people who separated from a spouse showed that 38% experienced a 50-point reduction in their credit score in its aftermath. This can be problematic due the importance of a credit score in securing a new home, purchasing a motor vehicle and more. In general, there are viable strategies to protect a credit score prior to the divorce. It is wise to check credit reports to see the accounts attached to an individual. There could be accounts that the person was unaware of.
There are three credit bureaus, and pulling the report from all three can give detailed information on what to address beforehand by removing oneself from the spouse’s accounts to avoid liability. The separation of accounts should be done immediately. Before the accounts are separated, people should track the charges to see if there has been excessive spending.
Creditors should be informed of pending changes regarding the accounts. Some debtors who accrued joint debt can find themselves responsible for the entire debt if they do not mitigate these concerns. Finally, freezing the credit could be an alternative. This can prevent a spouse in an acrimonious divorce from making large purchases. Freezing impacts opening credit accounts, but it could be a necessary concession until the divorce is complete. Credit and debt are major aspects of a divorce, and people should be attentive. For this and any other part of a divorce, legal assistance may be needed to provide information on how to proceed.