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Separating finances in a divorce

On Behalf of | Nov 30, 2017 | High Asset Divorce |

When Pennsylvania couples get divorced, one of the most complex tasks that they will need to complete is separating out their finances. Over time, a couple’s finances can become very intermingled, which can make untangling them a difficult process. It is important to do so that people can build their individual credit histories while not suffering financial harm from the decisions made by their exes.

During divorces, it is important for people to make certain that their shared credit accounts continue to be paid on time. When both spouses’ names appear on a credit card, failing to make the payment will harm both of their credit. People should make certain that all of their credit accounts are paid on time, and they should work to close joint accounts as soon as they can. People who have their spouses listed as authorized users should remove their authorizations promptly.

If people are unable to pay off joint credit cards immediately, they should freeze the accounts to prevent their spouses from running up more debt. They should then make certain that their divorce agreements fairly divide the balances. People should be aware that creditors may still come after them for the entire balances if their ex-spouses do not pay their shares, however.

Divorcing spouses should also begin building credit histories in their own names following their divorces and adopt sound credit practices. This can help them to avoid some of the negative credit impacts that might happen with divorces. In a high-asset divorce, people may need to untangle their interests in a broad array of assets in addition to dividing their debts. A family law attorney who is experienced in handling complex property division matters might help clients to divide their assets and debts in a way that minimizes the negative financial consequences that they might otherwise face.