The divorce process creates many worries, and most of them center around finances. It is not rare that people who divorce find themselves struggling to maintain or attain good credit. If this is your case, find out how a talented Peoria divorce lawyer at Butler, Giraudo & Meister, P.C., can help protect your finances throughout your divorce process.
How can I avoid hurting my credit during my divorce?
Firstly, if possible, it is best to maintain a civil relationship with your former spouse during the divorce process to avoid any pitfalls with your finances. The following are some actions to work through:
- Gain a clear understanding of your finances: Learn the balance of your and your former spouse’s 401(k), 529 accounts, and savings plans. Also document all financial obligations incurred during the marriage, such as mortgages, credit card accounts, medical bills, and student loans, and outline what you owe for each account, whose name is on the account, and whether any of them are past due.
- Separate your bank accounts: Separate your bank accounts from your former spouse to avoid complications regarding your assets during divorce proceedings. It is best to have an account that can only be accessed by you.
- Check to see if your former spouse has insurance: It is important that your former spouse is insured if they will be making alimony or child support payments. Having life insurance will ensure that their estate will supply any monies owed if they were to pass away.
- Create an emergency fund: It is always important to have savings for a rainy day, especially if you are going through a divorce. An emergency fund is crucial in the event that the majority of your assets are held only in the name of your spouse.
- Monitor your credit reports frequently.
- Negotiate with lenders for a modified payment plan: A divorce decree does not break contracts with lenders. If your spouse is unable or unwilling to pay what they are responsible for and the contract has not been changed by the lender, the late payments will still appear on both credit reports and will have a negative impact on the credit score of both you and your former spouse.
- Hire an attorney: Retain the services of a knowledgeable Peoria County family law attorney who will maintain your financial health through this process.
Contact Our Experienced Illinois Firm
At Butler, Giraudo & Meister, P.C., our divorce lawyer will help you navigate the divorce or family law matter you are facing. We provide effective and compassionate legal counsel for the following legal matters: divorce, alimony, division of marital assets, child custody, and child support. Contact us today.
