Divorce - What You Need To Know
3 Steps to Put Your Plan in Place
Step 1: Now that you've made the decision to sell, it is time to connect with your realtor to discuss your seller net proceeds from the sale. Two things to consider when meeting with your realtor are: a) How will your proceeds be split between you and your ex-spouse? b) Understand when the proceeds will become available to you.
Step 2: Once you know how much you are receiving and when, you will want to begin considering your next move. Will you be buying another home or renting? You'll want to start thinking about your budget with this new income- whether that is including alimony and child support.
Step 3: After you've got a clear picture of your budget and have decided to purchase another home, you will need to contact a lender to get pre approved on your next purchase subject to or contingent on the sale of the marital home. You will need to provide income documentation and asset information. Additional documentation to be provided: a copy of your Divorce Decree.
3 Things to Know to Protect Your Credit
First thing you should know about credit is that creditors do not honor divorce decrees. This is important to know, because people think that just because their divorce decree states that their ex is responsible for a specific account, doesn't mean that your ex will handle things responsibly. And if your ex-spouse makes a late payment on that account, it will still reflect on YOUR credit if you are still on the account.
Second thing you should know is that joint accounts will stay on your credit report until they are paid off or closed. When going through a divorce, you will want to understand the difference between being an account holder and being an authorized user. If the account you have opened is joint, then both you and your spouse are financially responsible for the account.
The third thing you should do to protect your credit is to keep ongoing communication with your creditors. Make sure that all of the creditors that are reporting to the 3 credit bureaus have your updated address and you are getting monthly statements.