4 Ways to Protect Your Credit in an Illinois Divorce

 Posted on April 10, 2024 in Divorce

You may have heard at least one person say, “I lost everything in the divorce.” This tends to happen in divorces where finances and assets are not managed properly. Without the right divorce attorney, a person going through a divorce can lose a lot of money to:

• Spousal maintenance payments, also known as alimony

• Child support payments

• Division of assets

Another pitfall that is often overlooked by divorcing parties is how their credit can be damaged by the divorce. This article will discuss four ways to protect your credit in an Illinois divorce.

Remove Your Spouse From Credit Cards

One of the most important ways to protect your credit is by removing your spouse’s name from your credit cards. As long as your spouse is an authorized user of your credit cards, you run the risk of debt piling up. Not only will you be responsible for that debt, but you may be paying for expenses that are no longer yours. 

Keep in mind that timing is very important. Removing your spouse’s name from your credit cards too soon can be problematic, so make sure to consult with a skilled divorce attorney before making that decision.

Manage Joint Checking Accounts

If you opened a joint checking account with your spouse, you may need his or her consent to close it. If you do not have that consent, make sure to track the account closely. A checking account that is not properly maintained can wreak havoc on your credit score. This is especially true if you have set up the account to make regular payments for bills, loans, mortgages, or other expenses. Insufficient funds and overdraft fees can tank your credit.

Also, be sure to give a close look at those recurring payments. Some of them may no longer apply to you.

Build a Budget

A common mistake made by people who get divorced is failing to create a post-divorce budget. As mentioned, you may have additional expenses now such as alimony payments and child support. If you do not properly account for these, you can end up ruining your credit.

Moreover, if you were a double-income household during the marriage, that is not likely to remain the case after the divorce. A budget that is built correctly will account for a single income and any new payments you might need to make.

Contact a Wheaton, Illinois Divorce Attorney

Another great way to protect your credit is by consulting with a qualified DuPage County, Illinois divorce lawyer. An experienced attorney like those at Davi Law Group can advise you on how your credit might be threatened by the divorce process and what steps you can take to minimize those threats. Call 630-657-5052 for a free consultation today.