It is important for people who are going through a divorce to take measures to protect their financial interests. Such proactive action will avert any complications that can arise once the divorce is concluded. This article discusses some of those proactive measures that you should take.
Institute a Credit Freeze
Instituting a credit freeze means that no one will be able to access your credit report. This measure is often necessary for couples that are divorcing since they usually have shared accounts. Your former partner can decide to obtain a loan in your name using the financial details in his or her possession. The credit freeze prevents such a person from making that move since it will be impossible for them to get a credit report to use when processing the loan.
Change the Authorised Users
It is also important for you to alter the account credentials so that your former spouse is no longer authorised to use your bank account. This will prevent that individual from withdrawing money or conducting any other transaction that may jeopardise your financial interests.
Refinance
You can also decide to refinance any credit facilities that you jointly have. Refinancing will enable the new credit to be in the name of the individual who will take custody of the formerly shared asset, such as the marital home or vehicle. In this way, any financial misconduct of your former spouse in discharging his or her responsibilities regarding that credit will not affect your credit score. Refinancing can also be a way for you to retrieve compensation for your share in that asset which is now reverting to your former spouse.
Change the Rules
It may not be possible for you to cut your spouse out completely from an account that you have been holding jointly. This may be the case if you opened a joint account for the purpose of obtaining credit. Changing the operational rules for that account can help in such situations. For example, you can alter the rules so that every action taken regarding that account has to be endorsed by both of you instead of only one person (as may have been the case earlier).
Family law solicitors can help in case you suspect that divorce proceedings are about to be initiated by your spouse. That expert will advise you about the best way in which to implement the different measures, which can safeguard your financial interests.
Share24 January 2018
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