{"id":6752,"date":"2017-11-06T19:02:24","date_gmt":"2017-11-07T00:02:24","guid":{"rendered":"http:\/\/teammovemortgage.com\/?p=6752"},"modified":"2020-07-13T22:28:16","modified_gmt":"2020-07-13T22:28:16","slug":"separation-agreement","status":"publish","type":"post","link":"https:\/\/teammovemortgage.com\/blog\/separation-agreement\/","title":{"rendered":"Getting a Mortgage While Separated Without Cancelled Checks"},"content":{"rendered":"

The end of a marriage is a trying time for a family and it typically doesn’t happen often in someone’s life, so it is hard to prepare for what happens or needs to happen.\u00a0 In addition to the emotional toll it places on a family, a separation can also wreak havoc on a family’s finances as well.\u00a0 Once you get a separation agreement completed, the language may sound pretty simple for what to do.\u00a0 Maybe\u00a0one person take over this debt, another take over the house, or even one spouse pay the other the equity in the house.\u00a0 But then once you start trying to actually get that refinance, pay off the ex spouse, or purchase another home<\/a>, it is tougher than you think.<\/p>\n

Separation Agreement and Credit Tips\"separation<\/h2>\n

One of the most common explanations\u00a0for credit issues is divorce.\u00a0 Often in a legal separation<\/a> there is a lot of anger and resent towards the other person.\u00a0 There may even be the desire “to get” the other person so that they suffer!\u00a0 But, in doing this to the other person usually affects both sides when it comes to credit<\/a>.\u00a0 Keep in mind that if credit is joint and one party doesn’t pay the bill, it affects both on the account.\u00a0 Therefore, credit scores drop and it is difficult to refinance or to buy another house.\u00a0 So, if at all possible, treat the financial side of a separation in a way that hopefully doesn’t ruin finances for years to come.\u00a0 Suggestions include…<\/p>\n

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  1. Pay the bills on time<\/li>\n
  2. Close joint accounts to future transactions<\/li>\n
  3. Open new cards individually<\/li>\n
  4. Keep an eye on your credit often – see how<\/a><\/li>\n
  5. Refinance quickly<\/li>\n<\/ol>\n

    First of all, no matter who is required to pay what, make sure the payments are made on time.\u00a0 Paying late will hurt a credit score dramatically for both parties.\u00a0 Just to be safe, any joint accounts should be closed for future charges.\u00a0 Too often we hear that an ex will continue to charge on a card and leave the balance for the other to pay.\u00a0 So, even if you still trust the other, get it closed.\u00a0 For credit score reasons, having a credit card can account for 30% of a credit score.\u00a0 Therefore, make sure that getting a card individually is a top priority.\u00a0\"credit This is not only important for emergencies, but not having a credit card could eventually lower scores<\/a>.\u00a0 Keep in mind to use the cards in a way to maximize credit scores though!<\/p>\n

    How to Have Walk on Water Credit!<\/a><\/h1>\n

    Again, even if you trust the other person it is best to keep an eye on your credit.\u00a0 You never know what could happen.\u00a0 Plus, we have seen too often where an ex has opened an account in the other’s name after separation, run up\u00a0a balance, and left it to be paid by the other.\u00a0 Getting an alert and\/or freeze\u00a0placed on your credit is something to consider.\u00a0 Finally, a separation agreement often requires the refinance of any mortgages that are joint.\u00a0 So, let’s discuss how this works.<\/p>\n

    Separation Agreement Requires Refinance<\/h2>\n

    Since there is one household becoming two, assets and debts often must be split up.\u00a0 Separation agreement requirements may include…<\/p>\n