Many Colorado couples have achieved a high level of success during the course of their marriage and will have significant assets to divide during any divorce. Even so, it is not uncommon for one or both spouses to neglect their credit standing during a marriage. This can result in serious problems when the time comes to move forward and obtain lines of credit in one’s own name after a divorce is finalized.
Some spouses believe that they have no need to establish or maintain a high credit score due to the fact that they will receive significant assets during the property division portion of their divorce. In reality, however, having poor or no credit can make it difficult to obtain new accounts after a divorce is made final. It can also impede one’s ability to find a good job, as many employers check credit scores prior to making a hiring decision.
Spouses who are preparing to divorce should gather their credit reports from each of the three main credit bureaus and check those reports for errors and omissions. Once any issues have been cleared up, the next step involves opening one or two new accounts, and maintaining perfect credit habits. Balances should be kept below half of the available limit, and payments must be made on time, each and every month.
By working hard to establish a positive credit history, Colorado spouses can move through their divorce with the assurance that credit will be available, if that need should arise in the years to come. In addition, for spouses who have not played a dominant role in the family’s finances, addressing credit issues can be a great way to take the reins on one’s own financial future. Doing so can make it far easier to face the transition from married to single.
Source: moneytalksnews.com, “10 Financial Moves That Keep You Sane During a Divorce“, Marilyn Lewis, July 23, 2015