Will my divorce negatively affect my credit score?

Will my divorce negatively affect my credit score? This is a question we hear often so we thought it would be beneficial to share some information in a blog article. It’s important to note that everyone’s situations are different and the information provided here is strictly speaking in generalizations. Credit reports do not look at marital status so technically speaking divorce does not affect your credit score. What you will need to be cognizant of are any joint accounts you hold with your ex-spouse. Speak with your attorney prior to the divorce for guidance on closing joint accounts or having your name removed from joint accounts. You will be legally responsible for accounts which remain open and have your name on them. This leaves you vulnerable to any poor decisions made by your ex-spouse and that in turn can affect your credit score. During the divorce process, it will be decided which spouse is responsible to pay specific loans. Even if a loan is not your responsibility according to the divorce, you are still legally responsible unless the actual contract with the lender is altered. Should the responsible party miss payments, and the contract has not been altered, the missed payments will negatively affect both credit reports. How can you best protect your credit rating when going through a divorce? It’s important to know ALL accounts with your name on them. As stated earlier, speak with your attorney for the best guidance specific to your case. Close joint accounts when appropriate or convert to an individual account. Make sure your ex-spouse is not listed as an authorized user on any of your individual accounts. Make on time payments to all accounts. Divorce is rarely easy, but being informed and taking preventative steps can help eliminate some of the hardships. At The Law Office of Pamela J Helton, we understand how difficult and emotional this time can be. We are here to guide you through the process and help you achieve the best possible outcome. For more information or to schedule an appointment, please call our office at 352-243-9991.