Establish your own credit
If you have unsecured loans with your spouse, try to separate them as soon as possible without closing your accounts. By having the account open and removing your spouse, you’ll be able to keep that account’s credit history, which can ultimately help your credit. Keep in mind, even if a divorce decree states your spouse is liable for paying an account, as long as your name remains on the account with the creditor, you’re responsible for this debt and unfavorable events could impact your credit.
Know What You Own and Owe
It’s common for one spouse to primarily be responsible for taking care of the finances. When this happens, the other spouse may not know what they own or what they owe. Therefore, it’s important that you make copies of every bank statement, will, titles to personal property, loans for education, home improvement loans, etc. so you can get a handle on your accounts.
It’s also important to take note of payment due dates, terms of the accounts, and additional expenses that could result from a divorce — such as alimony and child support. Get a copy of your credit report to ensure you know every account associated with your name. When you’re working with Atlantic Bay Mortgage Group®, you’re able to receive a free credit report to help you get started.
Keep Your Name on the Title of Your Home
If you and your spouse own the home together, consider keeping your name on the title. If you remove your name from the title too soon, you may end up financially responsible for something you don’t own any longer. So before you sign a quit claim deed make sure to have a qualified attorney and a financial planner review the documents.
Article provided by:
Joe Kersey, Sr. Mortgage Banker
NMLS #115652, Licensed in VA & NC