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27. February 2008 by amills.
Your marriage is breaking up. It feels as if you have lost control and your world is collapsing around you. Now is the time to get a grip and take control of your finances. Divorce can wreak havoc on your finances and your credit rating. But, with a few easy step, you can minimize the damage.
1. Pull your credit report: Everyone is entitled to a free credit report each year from each of the 3 big credit rating companies- Experian, Transunion, and Equifax. Visit www.annualcreditreport.com to get your free report. By looking at your credit report, you will be reminded of the accounts that you opened, but no longer use. Consider your options on each open account to prevent your spouse from inflicting a financial strike.
2. Decide what to do with each account: Your options include closing the account, freezing the account, removing authorized users from the account, and doing nothing to the account. If you owe a balance on a joint credit account, you will likely not be able to close the account. The next best option is to freeze the account so no one can run up a balance. If you are going to take action, do so before the divorce is filed or else the Interim Family Law Order will prevent action.
3. Open individual accounts: Get a bank account and credit card in your own name so you can continue to run your financial affairs.
4. Change the beneficiaries: If you have named your spouse as beneficiary in a will, bank account, life insurance policy, retirement account, or any other type account, remember to change the beneficiary so your spouse won’t get an unexpected windfall if you die during the divorce process. If you are going to change the beneficiary on an account, do so before the divorce is filed or else the Interim Family Law Order will prevent this action.
5. Consider what type of lawyer you want to hire: Some people think they will punish their spouse by hiring the nastiest divorce lawyer they can. Remember, the more your attorney fights on the issues, the more time the divorce will take and the more money it will cost you. Most of the time, property is divided equitably. Find a lawyer with a good reputation for working well with clients and other attorneys.
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