© 2015 Regents of the University of Minnesota. All rights reserved. Parents Forever CREDIT ISSUES DURING FAMILY TRANSITION JENNIFER GARBOW & SHARON POWELL

© 2015 Regents of the University of Minnesota. All rights reserved.

Parents ForeverCREDIT ISSUES DURING FAMILY

TRANSITION

JENNIFER GARBOW & SHARON POWELLUNIVERSITY OF MINNESOTA EXTENSION

FAMILY RESILIENCY, EXTENSION EDUCATORS


OBJECTIVES:

Objective 1: Protecting and maintaining your credit through family transition

Objective 2: Understanding the implications of overusing credit

Objective 3: Exploring division of debt


POLL How comfortable are you teaching issues

around credit to parents?


Objective 1:

PROTECTING & MAINTAINING YOUR CREDIT THROUGH A FAMILY TRANSITION

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Create a post-transition money management plan

Identify all sources of income

First expenses should be mortgage or rent


Inventory all debt & credit lines

request a free credit report

make note of individual & joint accounts


Remove each other as authorized users

THIS IS A SIMPLE AND IMPORTANT TASK FOR CREDIT CARDS


Separate Joint Accounts

IF YOU CANNOT SEPARATE, IT’S IMPORTANT TO MANAGE SHARED ACCOUNTS CAREFULLY

FOR LOANS WILL HAVE TO GO THROUGH THE LENDER


Monitor Your Credit

STAGGER PULLING CREDIT REPORTS EVERY 4 MONTHS

ANNUALCREDITREPORT.COM


Objective 2:

UNDERSTANDING THE IMPLICATIONS OF OVERUSING CREDIT


FINANCES & EMOTIONS

Can negatively impact both parents


FINANCES & EMOTIONS Impulsive decisions


FINANCES & EMOTIONS Using credit to get through


More expenses during transitionATTORNEY FEES RELOCATION EXPENSES

CAN YOU THINK OF OTHER ADDITIONAL COSTS DURING THE TRANSITION TIME?


Objective 3:

EXPLORING DIVISION OF DEBT


Secured & Unsecured Debt

SECURED DEBT IS BOUND BY THE TERMS OF THE CONTRACT, IF BOTH PARENTS NAMES ARE ON IT THEN BOTH ARE RESPONSIBLE


Unsecured Debt

DEBT IS IN GENERAL PROPORTION TO A PARENTS ABILITY TO PAY


Understand your Divorce Decree

DIVISION OF PROPERTYSPOUSAL SUPPORTCHILD CUSTODYFINANCIAL OBLIGATIONS OF EACH PARENT


What if a parent is not fulfilling their financial obligations?

IF IT’S A JOINT ACCOUNT THE OTHER PARENT IS EQUALLY RESPONSIBLE, REGARDLESS OF THE DIVORCE DECREE


Establishing your own credit & financial identity

USE INDIVIDUAL CREDITPAY ON TIMEPAY OFF BALANCES MONTHLYSLOWLY BUILD


Questions???

Thank you!


PollHow comfortable are you now teaching financial concepts to parents?


RESOURCES & REFERENCES www.DivorceSupport.com www.Credit.com MN Attorney General’s Office: For basic money & credit information:

www.ag.state.mn.us www.BankRate.com Request a free credit report at: www.AnnualCreditReport.com www.Creditkarma.com LawHelpMN.org: offers court forms, fact sheets, and other

resources on a wide range of legal issues www.mnlegaladvice.org: MN Legal Advice Online is a new FREE

way to get legal advice online if you can’t afford a lawyer.

http://www.creditkarma.com/

http://www.mnlegaladvice.org/

Documents

© 2015 Regents of the University of Minnesota. All rights reserved. Parents Forever CREDIT ISSUES DURING FAMILY TRANSITION JENNIFER GARBOW & SHARON POWELL