Protecting Credit in Divorce Law Offices of Richard K. Isles Attorneys Riverside California

Protecting Credit in Divorce

During upheaval of Divorce, the concern of a negative credit consequence often occurs. As you may be aware, the lives of those involved are usually changed forever. There are measures which can be taken to maintain high credit scores you have worked so hard to achieve.

When you contact our law firm experience of 20 years will lead you to understand there are often various ways to avoid the negative credit scores many couples have endured due to divorce. You can begin the process by becoming familiar with your debts.

Initially, you should obtain copies of your credit scores by utilizing the three major credit agencies (Equifax, Experian and Trans Union) In order to formulate a credit plan, you must begin with the knowledge of your credit as it stands at the current time. We can suggest a company who provides free credit reports once annually.

The second step to address is each account which is currently open. You can make a spreadsheet or simply a listing for each account, Log in the creditor name, contract number, the type of account (car loan, mortgage, credit card) , account status, account balance, minimum monthly payment amount, and who is vested in the account.

There are two types of credit accounts. This is important because secured accounts and unsecured accounts are handled differently in a divorce proceeding, when dividing debts. A secured account is attached to an asset, such as car loans or home mortgages. These are the most common secured loans. Unsecured accounts are generally credit cards and charge cards which have no assets attached.

Often secured loan accounts are refinanced or paid off in a divorce settlement. There are times when one spouse buys out the other. The last option is to keep your name on the loan. The risk here is that your credit is vulnerable if you are not the one making the payment.

When your home has equity, the attorney must review your existing home loan along with the equity you may have built up and advise you on the best course of action.

These are concerns Attorney Richard K. Isles discusses with family Law clients daily. Enlisting a 20 year experienced Family Law attorney should put you at ease in knowing your interests are protected.

Call our office to set up a consultation (888) 513-5924

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