• 25
  • January
    2012

The ability to move forward after a prolonged divorce can be truly gratifying. While you'll undoubtedly have to adjust to new circumstances, you will no longer have to spend time worrying about how property division, child support and other vital divorce issues will unfold.

However, while you may be tempted to put your feet up and take a much-needed mental break from examining any divorce-related matters, it's important not to end up overlooking certain areas over the long run.

One area in particular that divorcees will want to consider devoting some attention to is repairing or even establishing their own credit after a divorce. For example, a spouse who is obligated to make payments on a jointly held account in the divorce agreement may potentially fail to do so, damaging both parties credit in the process. Alternatively, it could be that a spouse has never had any financial/credit accounts in their name whatsoever.

Today's post -- the first in a series -- will briefly examine some basic steps offered by financial experts for building credit in the wake of a divorce.

Obtain a copy of credit reports

Financial experts recommend that you obtain a copy of your credit report from Equifax, Experian and TransUnion. (Under federal law, a person is allowed to access them once a year for free).

These credit reports will provide a very accurate picture of exactly where you stand in terms of your overall financial fitness and your credit score. They will also enable you to ensure that your former spouse isn't running up large tabs on any jointly held credit cards (something that can affect your credit score) and/or that there are no late payments/collection accounts to address.

Address any errors on your credit reports

Financial experts recommend taking a close look at the information found on the credit reports -- personal data, employment history and credit history -- to ensure everything is as it should be. Believe it or not, banks, creditors and other third parties sometimes make reporting errors that can end up being significant further down the road.

Accordingly, experts advise divorcees to use the online dispute forms provided by Equifax, Experian and TransUnion to request that certain corrections be made.

To be continued ...

Stay tuned for more from our Tarrant County divorce blog ...

If you would like to learn more about divorce or property division, you should consider speaking with an experienced attorney.

The following post is provided for informational purposes only and is not to be construed as legal or financial advice.

Source:

Fox Business, "Square one: How to build credit after divorce" Jan. 24, 2012