Breakdown of marriage is a common problem in the UAE, especially among the expatriates residing there, but it is even becoming prevalent among locals too. If your marriage recently ended, then there is probably a lot on your mind. Your credit score is likely that last thing you would think about, but you need to because the fallout resulting from a divorce can have a devastating impact on it.
You Will Need To Be Wary Of Your Cash Flow
If you have gone through a divorce, you may end up experiencing cash flow problems. This is particularly true if you and your spouse have accumulated a considerable amount of debt because you will have to continue making payments, even though your marriage has ended. If you are no longer living with your spouse, you likely had to bear the expenses of purchasing or renting a second place of residence. In such situations, the cash flow tends to decline, while credit card debt rises.
Do Not Get Distressed
If you had a lavish lifestyle while you were still married, it makes sense that you may end up in financial distress. Many married couples who had successfully maintained such a lifestyle during their marriage no longer have the financial resources to make the payments. The debt keeps on accumulating and they end up defaulting.
Something that family Dubai lawyers emphasize upon is to keep in mind that if a couple incurred some debt while married; it is still marital debt even if they have divorced. At times though, only one of the spouses can also be responsible for such debt, if they never spent that money for the benefit of their marriage. This is another reason that marriage breakdown results in increasing debt while reducing cash and income.
Protect Yourself & Your Credit Ratings
Your divorce does not necessarily have to transform into a financial nightmare for you. You can still safeguard your best interests, even after the conclusion of your marital relationship with your spouse.
If your divorce proceedings are still underway:
- Make sure write down all of your assets and debts on a piece of paper, and store it safely. Do not fret if you cannot remember the details of all your accounts. You could just ask your spouse, or you could look for copies of paperwork that might be lying around.
- Make it a consistent habit and routine to check your credit report. You never know, you may not even be aware that your spouse took out some “joint” debt or debt in only their name.
- If possible, keep an eye on your credit cards and any joint accounts you have. In fact, if you want to avoid accumulating further debt, perhaps you should close accounts and cards that were in use of your former spouse.
Conclusion – Choose The Right Family Layer
This was merely a handful of advice that family lawyers in Dubai tend to impart to their clients. Whether you are on the verge of filing for a divorce or are going through it already, it is best to consult with an attorney and discuss all your concerns with them, financial or otherwise.
Along with having a professional attorney on your side, you need to be meticulous and thorough. This could save you from financial ruin, including a tarnished credit score. Above all though, make sure not to solely rely on advertisements when searching for a suitable family attorney in Dubai.