Divorce is a stressful time, and it can have a significant impact on your financial life, including your credit score. If you are going through a divorce in South Dakota, it’s essential to take steps to protect your credit so that you can start fresh once the divorce is finalized. In this article, we’ll discuss some of the ways you can protect your credit during a divorce in South Dakota.
Know Your Credit Score
Before you even start the divorce process, it’s a good idea to know your credit score. This will give you a baseline for your creditworthiness, and you’ll be able to monitor any changes that occur during the divorce.
Close Joint Accounts
During a marriage, it’s common for couples to open joint credit accounts such as credit cards, loans, and lines of credit. When you get a divorce, it’s essential to close these joint accounts to prevent your former spouse from using them and damaging your credit.
Separate Your Finances
If you haven’t already done so, make sure to separate your finances as soon as possible. Open a new bank account and credit card in your name only and transfer your funds to these new accounts. This will help you establish your financial independence and protect your credit.
Monitor Your Credit Report
It’s important to monitor your credit report regularly during the divorce process. This will help you keep track of any new accounts that may have been opened in your name without your knowledge. You can get a free credit report from each of the three credit reporting agencies once a year.
Work with a Financial Professional
If you’re not sure how to protect your credit during a divorce, it might be beneficial to work with a financial professional. A financial planner or advisor can help you navigate the financial aspects of divorce and help you establish a plan for moving forward.
Final Thoughts
Divorce can be a challenging and emotional time, but it’s essential to protect your credit during this process. By closing joint accounts, separating your finances, monitoring your credit report, and working with a financial professional, you can take steps to protect your credit and ensure a solid financial foundation for your future.