Credit plays a significant role in financial stability, and when a spouse takes steps to damage it before a divorce, the impact can be long-lasting. A lawyer, like a divorce lawyer, knows that whether it’s through missed payments, unnecessary debt, or reckless spending, financial harm caused during this time can affect a person’s ability to secure housing, obtain loans, or rebuild after the marriage ends. Recognizing the warning signs and taking action early can help protect financial well-being.
Recognizing Signs Of Financial Sabotage
A family law lawyer knows that there are several ways a spouse may attempt to harm credit before a divorce. Some of the most common signs include:
- Missing payments on shared accounts. If a spouse intentionally stops paying a joint credit card or loan, it can lower both parties’ credit scores.
- Running up debt on shared accounts. Making large purchases or maxing out credit cards before the divorce is finalized can create financial strain.
- Opening new credit lines without consent. If a spouse has access to personal information, they may open new accounts in the other person’s name.
- Draining shared bank accounts. Rapid withdrawals or transfers of large sums can cause missed payments and financial instability.
- Refusing to contribute to household expenses. If one spouse suddenly stops paying their share of bills, the other may struggle to cover all expenses alone.
Steps To Protect Credit And Financial Stability
If it seems like a spouse is taking actions that could harm financial standing, there are steps to minimize the damage and regain control.
- Monitor Credit Reports. Checking credit reports regularly can help identify any unusual activity. If new accounts appear or balances increase unexpectedly, it may be necessary to take action quickly.
- Separate Finances Where Possible. Closing joint accounts or removing authorized users from credit cards can prevent further financial damage. Opening an individual bank account and redirecting direct deposits is also a good step.
- Keep Records of Financial Activity. Maintaining copies of bank statements, credit card transactions, and other financial documents can be useful if legal action is needed later.
- Work with Lenders. If an account has already been impacted, contacting lenders to explain the situation may help prevent further harm. Some creditors may offer options to protect an individual’s credit in these situations.
- Consider a Credit Freeze or Fraud Alert. If there is concern about unauthorized accounts being opened, placing a credit freeze or fraud alert with the major credit bureaus can provide added security.
Legal Support Can Help
Addressing financial sabotage during a divorce can be overwhelming, especially when trying to maintain stability. Attorneys like those at Robinson & Hadeed can attest to how financial misconduct before a divorce can affect settlements, credit standing, and long-term financial security. Legal guidance can help determine the best course of action for protecting assets and credit throughout the process. If credit has already been impacted, taking steps to rebuild is important. Paying down debt, disputing fraudulent charges, and making consistent on-time payments can help improve financial standing over time. Seeking professional financial advice may also provide useful strategies for recovery. When you are seeking legal help during your divorce, speak with a local lawyer for help.