|
by Ellise Walsh
A sad reality among many married couples today is that divorces are occurring at an alarming rate. Perhaps even worse than the destruction of the marriage are the results that soon follow. Many of the side effects of divorce involve money, credit issues and far too often personal bankruptcy. Couples who become divorced are extremely likely to experience financial fall-out in the months and years following the divorce. Perhaps this trend is because the couples were experiencing money problems even before the marriage dissolved, which might have even led to the divorce.
|
|
FREE Bankruptcy & Credit eNewsletter |
|
|
|
Or perhaps it is just simply too difficult to adjust from typically two incomes to one income and maintain almost the same amount of monthly debt. Whatever, the reason, there is no denying that divorce and money problems seem to go hand in hand.
Individuals who are recently divorced or who are thinking about divorce should take several considerations into factor regarding divorce and their credit score. Simply obtaining a divorce will not protect someone from mounting financial problems, even if the other person is primarily to blame.
As soon as it becomes apparent that divorce is about to occur, or if it has already happened, you should waste no time in informing anyone with an interest in your financial affairs that your name should be removed from any joint accounts. This includes banks and credit card companies. The reason for doing this is that no matter who is responsible for actually spending the money, both partners share equal responsibility in paying the bills on jointly held accounts. This means that even if you know nothing about it and your ex or soon to be ex-spouse decides to go out and max out all of the credit cards, if you have not taken steps to have your name removed from the accounts, you will remain responsible for the bills; even after the divorce. If you won’t or you are unable to pay the bills and your ex-partner doesn’t pay the bills, you will both receive bad credit ratings. While it may not be fair, it is a fact.
After you have taken steps to have your name removed from all joint accounts, what you will need to do next is to open new accounts, with only your name listed. This action serves a two-fold purpose. First, after you close out all joint accounts, you may have little to no accounts remaining you are able to access. You will need those new accounts to conduct simple day to day business. Secondly, it is critical that you begin to create your own credit history, separate from that of your spouse. This is especially important if you were not the primary wage earner within your marriage. Experts recommend that you open a regular banking account, a savings account and obtain a credit card-in your own name. A secured credit card is a good option for individuals who are not able to qualify for an unsecured card. A secured card looks and works no differently than an unsecured card and it will help you to build up a good credit score. Also, there is much less temptation to misuse a secured card.
Run a credit check on yourself so you can avoid any unpleasant surprises. This is especially important if you were not the person to handle the finances within the marriage. If that was the case, you may have no idea where your credit score or the credit score of your spouse stands. Even after you have taken steps to have your name removed from joint accounts, previous actions of your spouse may still come back to haunt you. While there is nothing you can do now about bad financial decisions your spouse made while you were married, at least you can be prepared.
Avoid making any major purchases right away. Individuals who have been recently divorced have a tendency to make themselves feel better, and alleviate depression, by making rather large purchases. This is a mistake. Not only does it deplete financial reserves you may well need for something later on, but if you are buying on credit it can have a negative impact on your credit score. Instead, wait awhile until the initial shock of the divorce has worn off. There will be plenty of time later to think about any purchases you may want to make.
Finally, begin to set financial goals for yourself. Decide how much money you would like, and are financially able, to contribute to a savings account. Think about any major purchases that may be necessary in the future and how much money you will need to save in order to buy them. Construct a budget for yourself so that you know exactly the minimum amount of money you need in order to meet your monthly obligations.
About the Author
Ellise Walsh is our newest contributing writer. She's avid author of personal finance, bankruptcy, and divorce related strategies. Look for more articles from Ellise coming soon!
Check out Ellise's site at: Debt Help
|
 |
| |
|
|
|
Quality free consumer information on bankruptcy & credit is hard to come by these days, let alone expert advice. Sign up and get this free newsletter and guide to understanding bankruptcy and credit and start getting your life on the right track. If you have any questions, you can also Talk to an Expert about your situation. So sign up for the newsletter or contact us and we'll find the best expert in central Ohio to fit your needs.
You will NOT find this quality of free bankruptcy and credit information from professionals anywhere else. Professional level advice brought to you FREE as an effort from our network of central Ohio professionals.
|
|
***Please note all information we collect at RightWay is held in strict confidence. We do not sell or share our customer list with any other entities under any circumstances. |
|
 Can't find what your looking for? Go to our article archive and check out some of our past articles. You can also sign up for a newsletter:
Article Archive
Newsletters
|
|
|
|
Talk to other RightWay users about your own personal finance experiences - retirement, mortgages, credit, investing, college planning, bankruptcy OR create a financial topic yourself. It's very new - so we encourage you to get in there and check it out.
Click to Enter |
|
|
|
Everything you need to know about Columbus is right here for you! Powered by our friends at Columbuscene the online community gathering place for Columbus, Ohio.
go there now! |
|
 |
|
| Consumer Financial Education. Get your financial bearings in your foundation classes, do research in our research and glossaries section, use our calculators or sign up for our Money U Newsletter. Check it Out! |
|
|
When Is a Good Time to Sell a Mutual Fund? (AP)
AP - For many investors, buying a mutual fund is easy, but knowing when and why to sell can be much more difficult. Experts say there are a number of reasons why you should think about letting go of a fund, but it might surprise you to know that poor performance isn't necessarily one of them.
Fannie Mae Agrees to Put in New Controls (AP)
AP - In a second accord with federal regulators, embattled Fannie Mae has agreed to set up new policies to prevent faulty accounting, split its chairman and CEO position into two jobs and create a new office to hear complaints from company employees.
Dow Down on Boeing News, Tech Shares Up (AP)
AP - A cautious stock market finished the session mixed Monday as a troubling top-level management shakeup at Boeing Co. pressured blue chips, while technology shares saw strong buying. The Dow Jones industrial average came within 16 points of cracking 11,000 but settled with a minimal loss.
Robert Budden: A hawk flaps its wings (FT.com)
FT.com - It's amazing what impact just one person can have on mortgage interest rates. Minutes released this week from last month's monetary policy committee meeting show that Paul Tucker, a well-known hawk on the committee, recommended an interest rate hike last month.
Making the Most of Those Deductions (Reuters)
Reuters - Income taxes are the price we pay
for our civilization, as Oliver Wendell Holmes once said. But
there's no point in going overboard. It's good to aim at paying
what you're supposed to -- and not more.
Survey: Students Not Taught Basic Finance (AP)
AP - More states are requiring students to learn about managing money, but personal finance remains a fringe topic in schools and a major source of federal concern.
GE Unit to Enter Japan Mortgage Business (Reuters)
Reuters - A subsidiary of U.S. conglomerate General
Electric Co. said on Friday it plans to enter the housing loan
business in Japan next month by opening offices in six major
cities.
Greenspan Says Taxes Should Focus More on Spending (Reuters)
Reuters - Federal Reserve Chairman Alan
Greenspan on Thursday backed a change in the tax code, shifting
more to taxing personal consumption, but said scrapping the
income tax altogether may be too drastic a step.
30-Year Rates Highest Since December (Reuters)
Reuters - Interest rates on U.S. 30-year
mortgages rose to their highest level since December amid
concern that long-term rates are poised to increase, according
to a report issued on Thursday by mortgage finance company
Freddie Mac.
Rates on 30-Year Mortgages Increase (AP)
AP - Rates on 30-year mortgages climbed for a third straight week, pushing the level to the highest point this year.
Home Mortgages (AP)
AP - Home Mortgages
Employee Confidence Slides -- Surveys (Reuters)
Reuters - U.S. employee confidence fell sharply
in February, as workers grew more worried about personal
finances, layoffs and job security, according to surveys
released on Wednesday.
FCC Proposes $770,000 Do-Not-Call Fine (AP)
AP - The government proposed a $770,000 fine on Tuesday against a mortgage company for allegedly calling people who put their telephone numbers on the federal do-not-call registry.
Charter Says 4Q Loss Widens to $340M (AP)
AP - Charter Communications Inc., the nation's third biggest cable television system operator, said Tuesday its fourth-quarter loss widened to $340 million, citing higher programming and service costs, increased interest expense and a lower income tax benefit.
Sallie Mae Names Fitzpatrick CEO (AP)
AP - SLM Corp., known as Sallie Mae, promoted Thomas Fitzpatrick to chief executive to replace Albert Lord, who will be elected chairman later this month.
Bonds Slide, Yields Highest So Far in '05 (Reuters)
Reuters - Benchmark U.S. Treasury yields climbed
to their highest level so far this year on Monday as
mortgage-related selling and a break of a major chart level
caught many in the market by surprise.
Countrywide Raises '05 Earnings Forecast (Reuters)
Reuters - Countrywide Financial Corp. on
Monday increased the range of its 2005 profit outlook on
expectations of resilient demand for home loans, even though
interest rates have risen slightly.
Accountant Decries IRS on Insurance Taxes (AP)
AP - Most people dream of golfing, fishing or playing with their grandchildren at the end of a long career, not picking a fight with the Internal Revenue Service. Not so for Charles Ulrich, a certified public accountant in Baxter, Minn., who has spent 45 years in the field. Now, he is battling the nation's tax collectors over life insurance.
Why These Times Are Not So Taxing For Intuit (BusinessWeek Online)
BusinessWeek Online - At irs.gov, the very first link is Free File -- an invitation to use, gratis, the sort of tax-preparation software that often goes for $30 or more. That would seem to be handwriting on the wall for Intuit , one of the companies that Uncle Sam lassoed into the Free File initiative and the maker of the leading tax software, TurboTax.
Existing Home Sales Decline in January (AP)
AP - Sales of existing homes edged down a slight 0.1 percent in January as strength in sales of condominiums was offset by a dip in demand for single-family homes, a real estate trade group reported Friday.
Pfizer's Raines Won't Stand Re-Election (AP)
AP - Pfizer Inc. said Director Franklin Raines, former chief executive of Fannie Mae, won't stand for re-election at the company's upcoming annual meeting.
Santander Reports Fourth-Quarter Loss (AP)
AP - Santander Central Hispano SA, Spain's biggest bank, reported a fourth-quarter loss Friday, blaming it on layoffs and costs related to its purchase of Britain's Abbey National PLC, Britain's sixth-biggest bank and second-biggest mortgage lender.
Abbey reports first profit since 2001, confirms 3,000 job cuts (AFP)
AFP - Abbey National, the British bank recently bought by Banco Santander Central Hispano (SCH) of Spain, announced its first annual profit since 2001 and confirmed the elimination of 3,000 British jobs.
Intuit's Winning Streak Continues (The Motley Fool)
The Motley Fool - Software maker Intuit recently reported second-quarter earnings of $0.77 per share, exceeding the average estimate by a penny. That shouldn't come as a surprise considering the company has a habit of beating the Street's expectations. Total sales increased 5% driven by strong gains from QuickBooks (a 10% sales gain) and consumer tax software (a 9% sales gain).
Axa's 2004 Profit More Than Doubles (AP)
AP - French insurance company Axa SA said Thursday that its profit for 2004 more than doubled, crediting productivity gains at its life insurance and savings arm and better property and casualty underwriting.
New Problems Found in Fannie Mae Accounting (AP)
AP - Federal regulators investigating the accounting of embattled Fannie Mae have discovered additional serious problems, the mortgage giant disclosed Wednesday, as it received a three-month extension for boosting its capital cushion against risk.
Earned Income Tax Credit Can Boost Refunds (AP)
AP - Millions of people each year qualify for the earned income tax credit but don't claim the benefit. It can mean much bigger refunds for low-wage workers, but its rules and qualifications can be confusing. Here are some common questions and answers about the tax credit:
Fannie: Regulator Finds Accounting Issues (Reuters)
Reuters - Fannie Mae on Wednesday said
its federal regulator has identified several accounting and
internal control issues and raised new questions about the
mortgage funder's accounting in an ongoing probe.
AmEx Unit Accused of Defrauding Investors (Reuters)
Reuters - New Hampshire securities regulators
have accused the personal finance advisory unit of American
Express Co. of defrauding investors by giving
incentives to its advisers to push select mutual funds over
other funds with better performance.
Bush Aides Play Down Need for Drastic Tax Overhaul (Reuters)
Reuters - President Bush's promised overhaul
of the tax code could be accomplished without drastic changes
such as switching to a national sales tax or flat income tax
rate, a White House report said on Thursday.
Nextel Profit Falls, Revenue Up (Reuters)
Reuters - Nextel Communications Inc. ,
the No. 5 U.S. mobile provider, on Thursday said quarterly
earnings fell 26 percent due to higher taxes, but revenue rose
on strong subscriber growth.
Housing Starts Rise to Nearly 21-Yr High (Reuters)
Reuters - A jump in starts on single-family
housing pushed total U.S. housing starts to a nearly 21-year
high in January, but other data released on Wednesday were not
as robust.
Housing Starts Climb to Nearly 21-Yr High (Reuters)
Reuters - U.S. housing starts unexpectedly
rose 4.7 percent last month to a nearly 21-year high as
single-family housing starts shot up to a record, a Commerce
Department report showed on Wednesday.
Mutual Fund Firms Angle for Advisor Loyalty (NewsFactor)
NewsFactor - Many times, personalization and CRM efforts are aimed toward customers or end-users of products and services. Often, though, they are aimed at channel partners, which, in the case of mutual-fund firms, are financial advisors.
W.House Questions Fannie, Freddie Value (Reuters)
Reuters - The White House on Monday called for
a new, stronger regulator for government-sponsored housing
enterprises, saying a problem at one of the giant mortgage
funders could spread throughout the financial system.
Ameristar Earns Respect (The Motley Fool)
The Motley Fool - The average investor has a huge advantage over Wall Street analysts. The Wall Street guy has to take a given set of companies and assign values to every company in that group. But as individual investors, our job is much simpler: We don't need to find every single stock that goes up; we just have to pick the high-percentage opportunities that make sense to us and hit them hard.
|
|
|
Get the FREE Bankruptcy & Credit Newsletter from local experts! 
