Building and maintaining a healthy credit score is something many individuals in Oregon may feel is an integral aspect of life. After putting significant time and effort into achieving such goals, you might not want to let anything disrupt your financial future, but sometimes things might not always go as planned.
If you face the end of a marriage, you may have some concerns about how the outcome of this process might impact your credit score. While there might be certain scenarios in which a divorce could prompt similar concerns, there are some steps you can take to help minimize risks and safeguard your future.
Steps to take
Untangling financial assets and addressing marital debts can be a complex task, but being thorough with such factors could be essential to preserving your interests. Some examples of steps to take to help protect your credit during a divorce may include:
- Addressing marital debts: It may be helpful to know that you might still be legally liable for joint debts even if your spouse agrees to responsibility during divorce proceedings. If payments fall behind, your credit may suffer.
- Refinancing loans: Existing balances on personal loans and mortgages are common forms of marital debt. Refinancing loans after a divorce may be a viable path to protecting your interests.
- Closing joint accounts: Closing joint credit accounts may also be essential to protecting your credit. Even if you can’t pay off remaining balances, this step could help prevent future charges.
- Monitoring your credit: Monitoring your credit report after a divorce may be vital to helping you identify potential concerns and take the necessary steps to safeguard your interests.
In some cases, selling certain assets and paying off marital debts might be the best path to mitigating a detrimental outcome, but sometimes this isn’t always preferable, or possible.
Your financial future
While the outcome of the end of your marriage will bring change to various areas of your life, it does not have to spell ruin for your financial future. Taking steps to better understand what is at stake and what steps you can take to preserve your interests could be integral to preparing a thorough strategy for what comes next. Since this can seem a stressful and intimidating task, it might be in your best interests to consider seeking advice in preparing to navigate every stage of the divorce process.
