The emotional toll of divorce often causes individuals to experience depression, anxiety, and intense stress. Additionally, dealing with the debt that comes with a divorce can be frustrating and isolating. However, there are steps you can take to protect, maintain, and even improve your credit score after an Indiana divorce. Understanding what options are available to you regarding debt and divorce in Fort Wayne is crucial to ensure you protect your future financial health.
Your Indiana Divorce Team
The family law attorneys at Stange Law Firm, PC, understand how difficult it can be to deal with divorce and financial insecurity simultaneously. That’s why our team of skilled litigators is committed to providing you with the knowledge, tools, and support you need to navigate this period of your life. We have helped countless families across the state successfully handle debt, financial and legal worries, and family issues, and are prepared to help you do the same.
Protecting Your Credit Score After a Divorce in Indiana
There are multiple steps you can take, even during your divorce, to ensure your finances are protected. These include:
- Close Any Joint Bank Accounts: If you want to protect your credit score after a divorce in Indiana, one of the first things you should do is close any joint accounts you share with your spouse. A divorce decree will not stop lenders from billing you the same way they did when you were married. Additionally, you never know when your spouse will try to misuse the funds you’re sharing.
- Transfer Outstanding Debts: If you or your spouse has collected debts throughout the marriage, it’s important to distribute them and ensure they are authorized to only one party moving forward. You should not have to share debts once your divorce is final, and taking on your ex’s finances can just make things more challenging for you.
- Remove Authorization: If you cannot close joint accounts or if you cannot transfer debts to the other party’s name, then you should consider removing yourself as an authorized user from an account.
- Refinance Mortgage: Spouses remain liable for joint debts such as mortgages after divorce proceedings conclude. Therefore, refinancing mortgages may improve your credit score.
The Different Categories of Debt You Must Consider During Divorce Proceedings
Debt is a broad term, making it imperative that you understand the different types of debt that may be relevant during your divorce in Indiana. The following are some of the most common forms of debt to analyze as you separate from your spouse:
- Tax debts
- Small business loans
- Medical bills
- Credit Card accounts
- Automobile loans
- Mortgages
- Student loans
The Difference Between Marital Debt and Separate Debt in Indiana
In 2024, the average amount of debt held by individuals was $48,000, highlighting the importance of ensuring a fair split when divorce occurs. During a divorce in Indiana, you should categorize all separate and marital debt. Marital debt includes debts created during the marriage relationship, and these often include joint accounts and home assets. Separate debt, on the other hand, refers to those debts the parties incurred before the beginning of the marriage relationship.
Why You Should Hire a Divorce Lawyer in Indiana
Retaining a divorce lawyer in Fort Wayne can help you relieve the overwhelming stress and potential financial burdens associated with divorce. An attorney from Stange Law Firm, PC, can provide you with an objective perspective regarding complex legal issues and advise you on how to protect your finances, future, and family.
The family law attorneys at Stange Law Firm, PC have years of experience helping individuals and families in the Fort Wayne community and are prepared to put that experience to use for you. Our skilled team can help you find the resources and legal tools you need to ensure that your financial interests are protected both during and after your divorce.
FAQs
How Do I Fix My Credit Score After Divorce in Indiana?
If you want to fix your credit score after a divorce in Indiana, then you should close all joint accounts immediately. Additionally, you should ensure you keep up with all payments under your name. You can open new accounts to establish your credit history. If you cannot close joint accounts, then you should request that the lender transfer the debt to the other party or take your name off the joint account.
How Is Debt Divided in an Indiana Divorce?
Indiana law uses an equitable distribution of marital property during divorce proceedings, which means the court begins with the presumption that it is reasonable to divide marital property 50/50 between the parties. This generally means that all debts that were collected by both spouses must be divided equally between them. However, you and your lawyer can work together to identify separate debts that were incurred by your spouse and not you.
How Do I Protect My Assets During an Indiana Divorce?
If you want to protect your assets from a divorce in Indiana, then you should hire a divorce lawyer who can protect your interests and negotiate on your behalf. If you have any prenuptial or postnuptial agreements, you should first assess whether those agreements impact your current property. From there, you and your lawyer can work together to identify and value all of your separate and marital property, ensuring all separate property remains left out of the divorce.
When Should You Hire a Divorce Lawyer in Indiana?
Regardless of whether your divorce is contentious or you have a lot of debt, it’s important that you hire a divorce lawyer as soon as you or your partner decides they want to end your marriage in Indiana. Working with a skilled lawyer ensures your interests are advocated for and that you and your family are protected while you navigate complex proceedings. An experienced lawyer from our firm can give you the tools and support needed to move forward with confidence.
Contact Us to Learn More About Divorce and Debt in Fort Wayne
Contact Stange Law Firm, PC today to learn how you can begin taking steps to ensure you come out of your divorce without additional economic pressure. Our family law attorneys have the experience, skill, and knowledge you need to protect your interests and your family.