Personal Credit Scores And Florida Divorces
Of course, there are many reasons for divorce, but one of the most common is money issues. Marriage is a legal relationship and finances are part of the union. When a married couple decides to end their union, their finances need to be untangled. This process needs to be completed correctly. If not, financial troubles can follow a person into their post-divorce life and their personal credit score can be impacted.
To take preventative steps, connect with a West Palm Beach family attorney. A skilled lawyer can guide you through the divorce process and assist you in making solid money decisions to protect your credit history.
Florida Follows Equitable Distribution Rules
Divorce laws vary from state to state. Florida, generally, follows the rules of equitable distribution, meaning that each individual carries responsibility for debts collected during the course of the marriage, no matter which spouse agreed to the debt or which name is on the agreement. This is often called marital debt.
Your credit history and the resulting score is connected to you individually. So, both you and your spouse have your own credit score. For this reason, it can be advantageous for the two of you to pay off existing debts and close joint accounts before divorcing. You may need to convert a joint account to an individual account, for example. But if you and your spouse are unable to agree on debt distribution, how debts will be paid needs to be clear in the settlement agreement.
Plan to Protect Your Financial Reputation
Some of the steps you can take to shield your credit score from taking a tumble through the divorce process:
- Review your accounts and close the ones that are jointly owned
- Properties should be sold or mortgage paperwork adjusted
- Other individual’s name needs to be removed if they are listed as an authorized user of your personal accounts
Problems can arise when a person doesn’t believe they are responsible for a debt and fails to make payments. Or, if your ex-spouse is accruing a large amount of debt on an account you are still legally responsible for paying off.
You can define what you want and define your future on your terms. A West Palm Beach family attorney has the experience and skills you need to navigate many divorce issues, including financial concerns. While the act of filing of divorce does not cause your credit score to rise or fall, missed payments can. To be sure there is clear communication about who is responsible for debts and to have financial accounts legally moved, talk your situation over with a legal professional.
Are you worried about your financial future? Connect with the legal professionals at Bruce S. Rosenwater & Associates to talk through what you want your financial picture to look like once your divorce is finalized. There is a path to stability, even if you are concerned your marriage will have a negative impact on your credit. A Florida lawyer can help you secure the life you want and deserve.