Divorce, like marriage, doesn’t directly affect your credit. You and your ex-spouse will still have separate credit reports. That said, divorce is usually a time of considerable stress, and legal and other expenses, loss of income due to interruption of routine, and inability to keep on top of expenses or disagreements about untangling finances can have significant consequences for your credit score.
Such concerns are often compounded when the divorce is not amicable, and property and debt division are contested. It is generally advisable to suspend joint accounts if divorce seems imminent and to try to establish individual accounts, and to keep good records of what debts have been incurred by which party, since any debts involving joint credit or joint property will be liabilities on both parties.
Remember, too, that apart from legal fees and whatever losses might result from a reduction in joint income, the sum of individual expenditures will often rise when former partners begin to support separate residences, perhaps acquire another vehicle and replace other shared items and expenses that no longer can be shared. It is best to budget strictly in anticipation, because any interruption in payments for joint debts may adversely affect individual credit ratings. Interruption in court-ordered spousal support payments and child support often accompany such upheavals, whether due to inability or unwillingness of a former partner to pay.
If you are able, try to untangle whatever debts you may have from those belonging to your spouse. Request in writing that any joint accounts be suspended and not reopened. Remove his or her authorized user status from any credit accounts. Once again, it is best to do this in writing. Also, if possible, get your spouse to have transferred to them any debts belonging solely to them, so that responsibilities will be as clear-cut as possible. Look to transfer balances and renegotiate debt to your favor wherever possible.
And even though the transition time is liable to be tempestuous, don’t blow off your debts. Stay in touch with your creditors, and let them know that you mean to meet your obligations, even though it may be hard to muster the focus during a difficult time.
For personalized guidance on how best to protect your assets and your credit during a divorce, contact the experts at Burr Law. They will offer intelligent, compassionate support to help you when you need it most.