If you are thinking about ending your marriage, you may have some well-founded fears about your financial future. This may be especially true if you stayed home to raise your kids while your spouse went to work.
Under Connecticut law, you should receive an equitable share of the marital estate to help you begin your new life. Still, if you want to purchase a home, buy a car, or further your education, you may need a good credit score. Here are four ways you can protect your credit score during your divorce.
1. Look at divorce options
Despite what television and film would have you believe, divorce does not have to be an all-out battle in open court. Because protracted litigation is often expensive, you may want to save money by looking at other options. Collaborative divorce and divorce mediation are often cost-effective alternatives to courtroom fights.
2. Address joint accounts
If financial disagreements were partly to blame for the breakdown of your marriage, you may not trust your soon-to-be ex-spouse to be responsible with money. Closing joint accounts early ensures your husband or wife cannot drag down your credit score.
3. Start budgeting early
After your divorce, you may have to adjust to life on a single income. Even if you ultimately qualify for spousal support, developing a workable budget before your divorce concludes may make the transition easier.
4. Request your credit report
Federal law entitles you to request a free copy of your credit report every year. Whether you are working on building good credit or repairing poor credit, knowing what is on your credit report is the first step.
During your divorce, you may feel many things are outside your control. Nevertheless, any effort you put into your credit score is likely to pay off substantially.
