For those going through divorce or thinking about divorce, common questions revolve around separating one’s financial life, like separating bank and credit accounts. Thinking about one’s financial life and how to separate it is good, logical thinking. After all, one does not want to be caught in a situation where they have no access to any of the family money or a plan on how to transition to the single-income life.
Credit, debt and property division
The first thing to remember is that debts and assets are both split during the property division process, so any new debt that one racks up during the marriage can take away from their share of assets (and reduce marital assets, generally). So, if one is looking at raking up a huge credit card bill before or during a divorce, keep that in mind.
New credit accounts
Now is actually a great time to, at least, open new lines of credit. This is because one’s household income is significantly higher during a marriage, with two incomes, than after the divorce, when that income is separated. This means that each spouse will qualify easier and for a higher amount than if they wait to apply for new credit post-divorce.
Starting financial independence
Do not forget to open the new Orlando, Florida, account in only the applicant’s name. This will ensure independence, control and privacy on that account. The soon-to-be ex-spouse will have no access to the account to close it, investigate expenses, etc.
Being an authorized user or having a spouse as an authorized user is a double edge sword. For the authorized user, they have access to their own card, based on the other spouse’s credit worthiness. Though, however that Florida spouse uses their card also affects the authorized user’s credit, which means that both late and on-time payments are reported to both spouses’ credit.