How to Protect Your Credit After a High Asset Divorce

 Posted on June 23, 2020 in High Asset Divorce

If you were the primary earner in your household during your marriage, and if you also have substantial separate property (as a result of earnings prior to the marriage or a family inheritance, for example), it will be important to think about how you can protect your credit and your financial profile after a high asset divorce in Texas. Even if your soon-to-be ex-spouse does not intentionally make bad financial decisions after the divorce, some of those poor financial decisions could impact your credit if you do not take specific steps ahead of time.

As you may know, Texas is a community property state. As such, most property acquired after the marriage will be classified as “community property,” as opposed to “separate property,” and it will be divisible between the parties. You may be thinking that you do not need to worry about your spouse harming your credit or financial profile since your spouse will receive a substantial amount of community property. However, if your spouse does not have much experience handling financial accounts and assets, that money may go quickly. The following are some recommendations for protecting your credit after a high asset divorce in Texas. If you have additional questions, a Texas high asset divorce lawyer can help.

Close Joint Accounts

If you have joint accounts of any type with your spouse, you should close them. Even if closing joint accounts requires significant work, ensuring that your ex-spouse will not have access to any of your accounts can be worth it in the long run. If you do not close joint accounts, even if your spouse knows that he or she no longer owns the assets in a particular account, your ex could still attempt to use the account to his or her benefit.

Consider “Authorized User” Credit Card Accounts

If you have certain credit card accounts for which you made your spouse an authorized user (or, if for some reason, you were an authorized user on an account opened by your spouse), it is essential to request removal. Any credit card usage your ex-spouse makes ultimately could impact your credit. Even if your spouse receives a substantial monetary settlement in the divorce, she or he may go through that money quickly and could turn to credit cards.

Check Your Credit Reports More Often

Even if you routinely check your credit reports and are signed up for alerts, it is more important than ever to continue checking those reports and, in some cases, doing so with more frequency.

Contact an Austin High Asset Divorce Lawyer

If you have questions about protecting your finances after a high net worth divorce, it is important to seek advice about your specific situation from an aggressive Austin high asset divorce attorney. At Powers and Kerr, PLLC, we provide a wide range of services to clients in high net worth divorce cases. For other issues that may arise in your divorce, a complex child custody attorney or complex litigation attorney at our firm can assist you. Contact Powers and Kerr, PLLC online or call our firm today at 512-610-6199.

Source:

https://statutes.capitol.texas.gov/?link=FA