New York Divorce Lawyer Explains Why You Should Discuss How to Handle Debt After the Separation
Divorce is undoubtedly a stressful time, however, it is important to handle all aspects of a separation including how to handle debt after a separation.
Don’t Delay in Handling Shared Accounts
Keep in mind that any accounts that you have that are shared with your spouse such as credit cards, joint bank accounts, and mortgages may negatively impact your credit if your spouse fails to make on-time payments or stops making payments altogether. The best way to protect yourself is to contact the issuer of the joint accounts and have the accounts closed or separated.
In most states, the mortgage is usually given to the spouse that has to take care of the children, however, laws may vary from state to state as well as any unique circumstances. A reasonable solution to handling the mortgage portion of the separation is to sell the property, pay off the mortgage and split any remaining sale proceeds.
Watch Your Finances
In order to build your individual credit and maintain or increase your credit score, make it a point to check your credit score on a monthly basis. By checking your credit, you ensure that there are not any inappropriate marks on your score that may have been placed in error. Furthermore, it helps detect identity theft early on so you can prevent it from turning into a bigger problem. Keep in mind that your soon to be ex-spouse has access to private information such as your social security number, bank account info, and perhaps even credit card numbers. It is better to be more cautious than have to deal with a bigger problem in the end.
Set a Budget and Stick to It
Since going through a divorce means that you will no longer have a dual-income or joint accounts, it is wise to determine the right budget for your lifestyle. The first priority will be to calculate the needs of the children from the most basic needs such as housing, food, transportation, car insurance, health insurance and any tuition for children’s schooling (if applicable) as well as any additional expenses such as after school activities, tutoring, and other expenses for the children. Knowing these will be helpful in determining the full amount of child support that will need to be determined.
Consult a New York Divorce Lawyer for Assistance
If you need help with division of assets or financial accounts, it is best to consult a savvy divorce attorney who can guide you in the right direction. Contact Sabra Law Group today to learn more about how we can help you prepare for all aspects of divorce at (626) 472-7971 and to schedule a consultation.