Financial problems are among the most common reasons for divorce in the US. Unfortunately, money issues also tend to persist after the proceedings. Even those that divorce for other reasons may experience financial issues. Such is especially the case when you consider credit cards and joint accounts. These things can cause multiple problems for many people.
Possible Scenarios Involving Divorce and Credit Cards
Divorce is hard enough to deal with without all the complications that can follow. However, many who are undergoing divorce have to deal with scenarios involving their credit cards. These scenarios can lead to you accumulating debt that can prove troublesome to pay. Some of these scenarios are the following:
- Large credit purchases: This is a situation that is all too common. A divorced spouse takes one last hurrah and goes on a big shopping spree using the credit card. Of course, this will only be problematic with joint accounts.
- Identity theft: It is highly likely that an ex-spouse will have all your personal information. Be careful, as this can be used for sketchy purposes. Your ex-spouse, for example, can apply for new cards under your name.
- Withheld bills: Many people rely on their spouses to pay their cards and do the accounting. These people are also not aware of unpaid bills after the divorce. It leads to credit card debts being racked up without their knowledge.
All these situations can prove to be very problematic. If you are undergoing a divorce, it is necessary that you protect your finances. It doesn’t matter if you trust your ex-spouse or not. That is something that you absolutely need to do in case of a divorce.
How Do I Protect My Finances?
Divorce can be a costly thing to go through. There are sometimes unforeseen situations that can add up to these costs. Many of these situations are preventable if you take the proper steps. Protecting your finances will make sure that your financial situation remains stable throughout this challenging time. Some of the best ways of protecting your finances are as follows:
- Take note of all shared properties.
Make sure that you keep track and monitor all of your shared properties, especially during divorce. Keeping track of any suspicious activity can help save you from a lot of trouble later on.
- Deal with any joint accounts.
Closely monitoring any joint accounts you may have with your ex-spouse is necessary. Watch out for disappearing cash. Most importantly, look out for any extraordinary credit card purchases. You don’t want to be have to shoulder all that debt, after all.
- Set up your notifications.
Modern technology allows you to be up-to-date with any activity regarding your bank account and credit cards. Online or SMS notifications will enable you to monitor any suspicious activity with your accounts. Pretty much all major banks will have notification systems in place should you choose to activate them. Ask your bank for more details about these.
- Beware of identity theft.
Some vengeful exes would want to take advantage of your personal information. Your social security number, IDs, and other details can be used for dishonest acts. Make sure that you are aware of whatever details that your ex-spouse may have. Getting insurance may help.
- Track all your credit card expenditures.
The best way of not racking up credit card debt is by tracking all your expenditures. It will help make sure that you have the means to fund your expenses. It is also a countermeasure against credit card fraud by your ex-spouse.
- Pay your bills on time.
One primary reason for people racking up credit card debts is when they do not pay on time. Make sure that you pay all your credit card bills on time to prevent this from happening.
Are you Going Through a Divorce and Having Credit Card Problems?
Divorce can be a tough time. Credit card problems can make this time even tougher. If you’re having problems, we at The Clark Law Office can help. Make sure that you have the best help that you can get regarding these matters.
The Clark Law Office is the most trusted divorce law firm in Okemos and Lansing. Our lawyers have experience in dealing with divorce, settlement, and financial matters. We’ll be sure to make things a lot easier for you. Contact us at +1 (517) 347-6900 to schedule a free initial consultation.