Credit Where Credit’s Due – How To Protect Your Credit Score During Divorce
Kathy Dicenso, CFP®
Remember, Court Orders Aren’t Magic
Most divorcing couples believe that a divorce decree can relieve a spouse of a joint financial obligation. Not true! Court orders and divorce decrees can’t save divorcing couples from financial peril if one or both spouses act irresponsibly. “People have a naive expectation toward court orders, like they’re magic,” says Barbara Stark, divorce lawyer and principal of Divorce Resolutions Resources. “But court orders are not magic. People have to learn to take responsibility for their own finances and their own lives. The sooner they learn this, the more quickly they’ll be able to limit the damage [to their credit rating].”
Why Credit Bureaus Will Disregard Your Divorce Decree
The most widely recognized credit score is FICO, computed by Fair Isaac & Co. In the U.S., your FICO score is based on financial information tracked by three major credit bureaus: Equifax, Experion, and Trans Union. (For a free credit report from these agencies, go to www.annualcreditreport.com). In Canada, the three major credit bureaus are Equifax Canada, NCB Inc. and TransUnion Canada. (Visit www.canadian-creditreport.com for a free credit report.)
How to Protect Your All-Important Credit Score During Divorce
If Only I’d Known…
This article has also been published by these sources: NFLR (Nevada Family Law Review) – Fall 2015
Article was received from the Institute for Divorce Analysts & submitted by Kathy DiCenso. Kathy DiCenso is President of DiCenso & Associates and can be reached at 775-336-0021 or at firstname.lastname@example.org. Kathy is not registered to provide services in Canada. Financial Planning and Securities offered through LPL Financial, Member FINRA/SIPC.
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