If you are in the process of getting or going through a divorce, you may be concerned that it can affect your credit score or even hurt the chances of you obtaining a loan. However, getting a divorce will not affect your credit score or report directly, because financial issues surrounding credit scores dropping are embedded in joint credit accounts. Upon divorcing, you should divide your joint accounts and remove your ex’s name off of them. This will help with managing your credit score. You must report each account as an asset upon going to court after your divorce, and individuals associated with that account are required to be reported. If your ex spouse (or soon to be ex) is listed as joint owner or an authorized user, you will be forced to deal with that account either by closing it or ensuring that one name is removed from it prior to you two divorcing.
Whichever spouse is the main party for the account is not able to pay or unwilling to pay and late fees appear, it will have a negative impact on both of your credit scores. The missed card payments can even occur years after your divorce but will still be reported for both of you because you are associated with that account. In some divorce cases, ex partners will purposefully charge up your account with late fees so that your credit score is ruined. This vindictive kind of behavior during or after your divorce will very negative impact. This is mostly common with authorized users on accounts because they are not held liable for payment. This is why it is advised that you take your ex off of your account as soon as you can, because if they are an authorized user on any of your credit cards they have the ability to spend however much they want without facing any consequences. If you are unable to pay off the debt they racked up, it will hurt your credit score and fall on you. So, if you have gone through or are going through the divorce process, make sure to do whatever you can to minimize the negative impact of it on your credit score. Ensure that all of joint bills are being paid in some way and try to stretch any budgets so that your personal bills are being paid on time. Most importantly, try to stay civil with your ex. This will help eliminate the potential for them to trash your credit score on purpose.
These are all things that you may benefit from discussing with a family lawyer Rockville, MD trusts to make sure you are taking the proper legal steps to secure your financial future.
Thank you to our friends and contributors at Daniel J. Wright for their insight into divorce law.