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Credit Card Debt and Divorce

When you are going through a divorce, financial concerns may feel like the last thing you want to consider. After all, when your family and emotional life is crumbling around you, dealing with credit card debt, mortgage payments, and property division can seem almost overwhelming. Dealing with financial issues, however, is one of the most important things a person can do to ensure that he or she not only has a successful divorce that is not tainted with nasty arguing and court battles — it can also help to lay the foundation for your new life post-split.

One of the simplest and most common type of financial concern you will need to address during divorce is credit card debt. Due to the high interest rates carried on most credit cards, this type of debt can be particularly important to settle with your (ex) spouse as soon as divorce talks begin.

The first thing to do to is to remember to begin to build credit as soon as divorce is on the table. That could mean opening a credit card in your name. Even if the last name will ultimately change, do not wait for the divorce to be finalized to begin to establish an independent financial life without your spouse. Your income could potentially drop after divorce (when you become a single-earner household, for example), which could make the ability to buy things and finance large purchases (such as a new home) a possibility only available to you with good credit. Seeking out the assistance of a financial planner could be just as important as working with an experienced divorce attorney.

Knowing your credit score, and how to improve it if necessary, is another crucial aspect to figuring out post-divorce finances and working with credit cards to help rebuild your financial life. Debt can often end up being the responsibility of one spouse. Be sure that you are closely monitoring your joint accounts — and putting some money aside — as soon as the first mentions of divorce are spoken.

If you or someone you know is considering divorce, figuring out your finances and what will happen with your shared credit responsibilities and debt is a crucial part of the process. Do not go through it alone. Contact an experienced DuPage County divorce attorney today.