Ways to Protect Your Credit in Divorce

Broken heart, broken pockets? Don't let this happen to you! Protecting your finances while trying to go through a devastating divorce may seem really tough, but it is doable. While divorce can be emotionally and financially painful for both men and women, it is believed that women typically bear the brunt of pain in divorce. If you are getting a divorce, here are practical tips to protect your financial security:

1. Contact your credit union and banks

Inform them that you are getting a divorce, and that they should not agree to make any more transactions on joint accounts without your approval.

2. Open credit in your own name

Immediately close joint accounts and establish your own credit.

3. Seek legal help if you must

You may consult a lawyer which specializes in divorce, but make sure you find a good one. And remember that you are paying your attorney by the hour, so do not waste time and money venting and sharing your emotions with your lawyer if you do not want to be even more broke.

4. Seek a mediator

Finding a mediator to help you and your ex spouse with legal matters like the division of properties and legal rights regarding the children and some joint properties will help you cut down on legal fees, and in some cases, will work just as well.

5. Obtain all necessary records

Gather all bank, credit union, insurance, tax records and list down all your properties and assets. Compile lists of expensive art objects, furniture, jewelry, and other investments.

6. Keep track of purchases

Realize that you are no longer living in a two-income household which is why you have to cut down on expenses. Make a list of every purchase, every expense, so that you will have a pretty good idea where you stand.

7. Make a budget, and stick with it

Make a plan how you are going to make your income enough for everything now that you are the only one earning money in your household. Know how much you need for basic expenses, and allocate money monthly for them. Know your budget by heart, and stick with it no matter what to avoid finding yourself in a financial rut in the future.

8. Get financial help