3 Tips to Protect Your Credit Score During a Divorce

By Kimberly Waletich, BounceBack Divorce Attorney

Divorce is difficult - both emotionally and financially. When faced with the near term stresses of divorce, people tend to lose focus on their future financial security. One thing in particular that many people fail to consider is the importance of their credit rating. Your credit rating is going to be very valuable to you in the long run, far after your divorce has been finalized. It will determine what you will be able to purchase - such as a house or a car - and what type of credit limits will be extended to you.

Here are some tips to help you protect your credit rating throughout the divorce process:

1) Know your score.

The first step towards protecting your credit score over time is knowing what that score is. Run a free credit report from Transunion, Equifax or Experian. If there are discrepancies in your report, deal with them immediately. If you have outstanding bills to collection agencies, pay them off. Collection agencies will often work out a payment arrangement with you, or accept a lesser amount now for payment in full if you take the time to work with them. If your bills are so large that you do not know where to start, you should look into a non-profit debt-counseling agency or speak with a bankruptcy attorney about your options.
  

2) Know your debts.

Inventory your debts, loans, utilities, mortgages, credit cards, cell phone and medical bills. Find out if you are liable on the debts (specifically if you are primarily or secondarily liable). Create a list of your monthly obligations and monthly payments on your debts. Don’t forget to include your utilities and household bills.

Next, make a calendar of your due dates for every bill and make a plan for when to pay – make sure to allow sufficient time for payment processing, so that your credit is not adversely affected if there are delays. Keep in mind that late payments of any kind can be reported to the credit agencies and will adversely affect your credit rating.

3) Protect your social security number.

Invest in a credit monitoring program. Many banks and credit card companies offer monitoring services for a relatively small monthly charge. There are also credit protection companies that offer similar services including guarantees or insurance against fraudulent credit activity. This is particularly important because your spouse most likely has access to your social security number, and could potentially use your credit without your knowledge. These services will also offer tools that provide guidance and simulations on steps you can take to build your credit score.

 Kimberly Waletich is an attorney specializing in divorce and family law in Virginia. She is a founder of The Roop Law Firm, PLLC (www.rooplaw.com), a boutique law firm focused on all legal matters incident to marriage and divorce. Kimberly earned her law degree cum laude from American University’s Washington College of Law in Washington, D.C. During law school, Kimberly completed an internship at the Virginia Supreme Court with the Office of the Chief Staff Attorney. Upon graduation she completed a judicial clerkship for the Honorable Judges of Virginia’s 17th Judicial Circuit Court in Arlington, Virginia. Kimberly is a member of the Virginia State Bar, the Virginia Women Attorneys Association, and serves as a representative to the Virginia State Bar’s Young Lawyer’s Conference.

BounceBack is changing the way people cope with heartbreak as a result of a breakup or divorce. BounceBack is a place to tell your story, get advice from experts, and share what you've learned with others in similar situations. We're here to remove the negative stigma around being heartbroken - this happens to everyone. And we believe everyone has the potential to bounce back to life and move forward. www.bouncebacktolife.com

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