Money is often an area of concern for many Arizona couples. When it comes to the decision to divorce, it can become even more of a concern. As expenses increase, income usually remains the same. In order to avoid problems, one will want to take specific steps to protect his or her credit.
One of the first things the individual will want to do is to obtain a copy of his or her credit report. The credit report will list all outstanding loans that are tied to the individual. This will include mortgages, car loans, bank notes and credit cards and will allow the individual to see exactly what is owed.
The next step will be to determine which spouse will be responsible for which debt. If one’s name is associated with the debt, his or her credit will be affected if that debt is not paid in a timely manner. Lenders are interested in being paid; they are not interested in which spouse is responsible for the debt. If debts are held jointly, it may be best to close the joint account and move the debt to an individual one if possible.
For those individuals who have not established a credit history in their own names, now may be the time to do so. This can be done by taking out a small, secured loan or opening a secured credit card if other methods are not an option. Divorce can have an impact on one’s financial life; however, there are steps that the Arizona resident can take to protect his or her credit throughout the process.