Protecting Your Credit During Divorce: A Guide for Southlake Residents

Going through a divorce is emotionally challenging, but the financial implications can be just as significant—especially when it comes to your credit. For individuals in Southlake, TX, and the surrounding Dallas-Fort Worth area, protecting your credit during a divorce is an essential step toward maintaining your financial independence and building a stable future.

 

At The Clanton Law Firm , we help clients safeguard both their emotional and financial well-being during this transition. Here’s how to stay proactive and preserve your credit during a divorce.

1. Understand the Risks of Joint Accounts

One of the most overlooked financial risks during divorce involves joint credit accounts. Whether it's a credit card, auto loan, or line of credit, both parties remain legally responsible until the account is closed or one party is removed.

To protect yourself the following steps should be taken after you receive permission from the court to do so:

• Close joint accounts as soon as possible.

• Remove your ex-spouse as an authorized user from your personal accounts.

• Monitor account activity to ensure there are no new charges or liabilities.

These actions are vital to prevent future financial entanglements that can affect your credit long after the divorce is finalized.

2. Notify Creditors About Your Change in Marital Status

Clear and timely communication with creditors is a must. Let them know about your change in marital status and your intent to close or separate accounts.

Keep in mind:

• Closing joint accounts usually requires mutual agreement.

• Outstanding balances may need to be paid off before the account can be closed.

• Ask creditors to convert joint accounts to individual ones, if possible.

At The Clanton Law Firm, we guide Southlake clients through this process to help avoid unexpected liabilities and disputes.

3. Monitor Your Credit Closely

During and after a divorce, it’s critical to keep a close eye on your credit. Use trusted resources like AnnualCreditReport.com to access free reports from the three major credit bureaus.

Be proactive:

• Check your reports for errors, unusual activity, or unauthorized debts.

• Consider changing account numbers or adding fraud alerts.

• In extreme cases, you might want to temporarily freeze your credit to prevent misuse.

These steps help you stay one step ahead and detect problems before they snowball.

4. Manage Shared Debts With Care

Unresolved shared debt is one of the biggest financial pitfalls during divorce. Even if a divorce decree assigns a debt to your ex-spouse, creditors can still come after you if your name is on the account.

To protect your credit score:

• Define debt responsibility clearly in the divorce settlement.

• Stay current on minimum payments until accounts are fully separated.

• Consider working with a financial advisor or credit counselor to create a strategy.

Our legal team in Southlake, Texas, can help ensure your divorce agreement addresses these concerns effectively.

Let The Clanton Law Firm Help Safeguard Your Future

Divorce doesn’t just change your relationship status—it changes your financial future. At The Clanton Law Firm, we offer compassionate, strategic legal support to help you transition into the next chapter of your life with clarity and confidence.

Call our Southlake office at 817-916-8484
Visit clantonfamilylaw.com to schedule a confidential consultation

Secure your financial future by staying informed and taking the right steps today.