When couples are involved in a divorce in New Mexico, there are many issues to worry about including their parent-child relationship, financial support and obtaining a fair distribution of community property. Given the stress and animosity that often accompany attempts to resolve these issues, parties to a divorce can lose track of financial issues or put off paying financial obligations. This is understandable because the complexity and shift in financial arrangements during a divorce can make it difficult to keep track of the status of outstanding accounts. Our experienced New Mexico Divorce Lawyers at Jay Goodman & Associates have provided some suggestions for protecting your credit when seeking a marital dissolution in New Mexico.
Monitor Accounts & Credit:
When you are involved in a divorce, you may want to request your credit report so that you can review all active credit card accounts and credit lines. When you have been married for many years, it can be easy to lose track of department store cards and other accounts that you have not used recently and that do not have a balance. It is important to make sure you recognize all items on the credit report and to continue to monitor these accounts throughout the divorce process. Joint accounts with no balance generally should be closed.
Separate Joint Accounts:
If you have joint credit accounts with existing balances, it is advisable to separate these accounts when feasible. This may be accomplished in some cases by using credit cards in each spouse’s individual name and transferring each spouse’s portion of the joint obligation to the respective credit card in the spouse’s sole name.
Determine Authorized User Status:
When you analyze entries on your credit report, it is advisable to look for accounts where the credit account is in your name, but your spouse is an authorized user. If your spouse is an authorized user but the card is in your name, this means that your spouse can run up charges on the card. However, the credit card company will only seek payment of the balance from you because you are the sole cardholder. While the court may still decide that the balance should be divided between the parties, this will generally not impact who the creditor will pursue to pay the debt.
Post-Divorce Budget:
A critical step in protecting your credit following a divorce is to plan for a post-divorce budget. Most couples struggle to maintain their standard of living in the wake of a divorce because they are now supporting two households with the same resources previously used to support only a single household.
The above information is provided to illustrate general principles of law and should not be interpreted as a specific legal opinion on an individual case. You should contact experienced legal counsel to get specific legal advice that is based upon your specific circumstances.
The New Mexico Divorce Law Firm of Jay Goodman & Associates offers a free consultation in our centrally located offices in Santa Fe and Albuquerque so that we can discuss your options. Call us today to schedule your free consultation at (505) 989-8117 to learn about your rights and options.
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