People tend to be unpredictable when they are emotionally fragile. People who are vulnerable might make rash decisions and judgments. The same thing can happen to your credit if you and your spouse are getting divorced. Simply put, your credit is in serious danger once the two of you finally decide to end your relationship. Imagine how your finances will be affected, if you arrange to make payments, but one your spouse suddenly decides to default and leave all the obligations to you. At worst, you could be left with a poor credit, decreasing your chances of getting good interest rates and other loan.

Know how to protect your credit as best as possible during times like these.

Inform creditors about your divorce and shut down joint accounts

Joint accounts should be taken care of first during a divorce, because this usually brings more problems for both parties. An open account is vulnerable to many things, e.g. your ex-spouse misses payments; your ex-spouse accumulates more debts or even defaults. This can affect your credit score, because both of your names are responsible for the joint account. As soon as all debts are paid in the joint account, notify your creditors about your divorce and request to shut down your account

Split responsibilities with joint debts

Before you can shut down joint accounts, you have to discuss with your spouse how both of you are going to pay your debts. For instance, if you're planning to pay for the mortgage, you can take the house; if your spouse is going to handle the auto loan, he or she can take the car. What's important is that all your debts are paid before the account is closed. Include these discussions in your divorce agreement so that you protect each other's reputation.

Ensure credit protection

You should always monitor your joint accounts and see to it that your spouse is also making responsible payments, and not only you. Check your credit score once every four months by requesting a copy of your credit report from reputed credit companies. Credit monitoring can be a big help, given that your credit is in a risky situation because of your divorce.

Start making a budget for yourself

Keep in mind that once you agree to divorce, you'll be moving from a double-income budget to a single-income budget. You must then create a budget plan to accommodate all your financial obligations. Always put housing cost on top of your list, followed by other debts, insurance, utilities, credit cards or even property taxes. If you think your budget will be pushed to the limit, cut out luxuries and other spending to give way to your necessities.

Prioritize id theft protection

If your ex-spouse knows your credit card details or is an authorized user of your other accounts, he or she can make a profit out of it. Unfortunately, people tend to take out their emotions on their spouse during or after a divorce, either by making huge purchases or binge shopping using the other's credit card. They can also use your identity to their advantage. It can harm your credit, so it's better to remove the spouse as an authorized cardholder as soon as the divorce is underway.