Divorce can have unexpected effects on your credit. If you are at the point of considering a divorce, you need to find out how to deal with your finances before you receive the possibly devastating injuries to your credit. Know your total debt situation. You might want to have legal advice as you go through the division of finances.

The recommended time to do this is prior to the finalization of the divorce. You should examine credit reports of both partners. Fix any errors. Continue to deal with the rest of your finances.

Joint responsibility for a home mortgage will need to be reworked. Such an issue needs careful management especially when child support and alimony is in the mix. It’s possible that you may decide to sell the home and split the proceeds or you may sell the home to one partner as responsible party.

Other debts including cars, credit cards, utilities, loans also need to be only in one name. These decisions are not easy ones but are necessary.

Credit cards in both names should be changed to one name. Should this not be done and payments to credit card companies stop, it is possible that the companies will insist on payment from the other spouse. The debt could end up in collections and result in messy collection calls. Such a situation can lead back to court and get nasty. Be aware before something negative happens that the poor credit of one spouse can show up on the report of the other, even if divorced.

Figure out all cash assets and how these will be divided. Do the split, close any joint checking and savings accounts and open accounts in individual names. No one can get to the other’s money.

It would be very positive if all joint debts could be paid even if some things have to be sold. This would ensure that each partner is responsible for his/her own debts. You want to move on with your life knowing that your financial base is secure albeit smaller than before the divorce.

Remember that even though the divorce decree spells out the person responsible for debts, this will not negate any joint financial responsibilities which can come back to haunt you if not settled prior to the final decree. Be proactive during the divorce process and get your financial status in order.