While the actual act of getting divorced will not directly affect your credit score, it is important to realize that dissolving a marriage does often take an indirect toll on an individual’s creditworthiness. How does this happen? Read on to find out.
The Indirect Toll Divorce May Take on Your Credit Score
We’ve all seen it in the movies: a scorned spouse goes on an extravagant shopping spree with the couple’s joint credit card in order to stick it to their soon to be ex-husband/wife. This is a common plot point in Hollywood movies but it actually happens in real life more often than you might imagine. Not only can your spouse waste a lot of your hard earned cash this way, but they can also negatively impact your credit score if you as a couple are unable, or unwilling, to pay off the massive bill that they racked up.
Additionally, an ex-spouse can also unintentionally take a toll on your credit score. For example, if your ex is in charge of paying off a debt you are both legally liable for (i.e. mortgage) and fails to keep up with their payments then your credit score will surely suffer. This can happen if the judge who presided over your divorce declared your spouse responsible for the joint debt at issue.
Tips For Protecting Your Post-Divorce Credit Score
As soon as your divorce is finalized be sure to protect your credit score by:
- Closing bank accounts that are jointly held by you and your ex,
- Canceling shared credit cards,
- Making sure that recurring household bills are in the appropriate party’s name,
- Refinancing loans to get them out of your name.
- Requesting a copy of your credit score to assess where your credit stands,
- Honestly evaluating your income/expenses and making a financial plan to help you keep up with your bills, and
- Taking proactive steps to help build a positive credit history.
Contact a Local Divorce Attorney
If you’re going through a divorce one of the best things that you can do to protect your financial future is to hire an experienced divorce attorney who will represent your interests every step of the way. Splitting up a family’s assets during a divorce often means that one or both spouses emerge with a significantly altered financial reality. Here at The Law Offices of Michael A. Robbins we are well aware of this fact and are therefore committed to fighting tooth and nail for every cent of marital assets that our clients are lawfully entitled to. If you are facing a divorce in Michigan and are wondering what our firm can do for you contact our Bloomfield Hills office today at (248) 646-7980.