How Does Divorce Impact Your Credit Score?
You have a lot on your mind when going through a divorce, and your credit score is likely not one of them. Unfortunately, if you do not take your credit score into consideration when ending your marriage, there are some things that could negatively affect it. So, if you are going through a divorce, how can you make sure you walk away from it with your credit score still intact? Follow the tips below.
Getting a Divorce Does Not Affect Your Credit Score
The mere act of getting a divorce is not enough to negatively affect your credit score. The court will not notify TransUnion or any of the major credit reporting bureaus of your divorce. Truthfully, the bureaus do not care whether you are married or single. They only care about the debt you owe and if you are making your payments on time. Still, while a divorce alone will not affect your credit score, there are some things that may occur during the process that will.
Separate Debt vs. Joint Debt
After your divorce case is closed, there is a very good chance you will be responsible for paying all or a portion of your separate debt, as well as your joint debt. Joint debts are those that you and your partner acquired during the marriage. For example, if you and your spouse purchased a home together during your marriage, the mortgage is considered joint debt. If you purchased a home on your own though, before the marriage, the mortgage is separate debt.
The type of debt you are liable for paying after divorce is important. Separate debt is likely in your name and so, if you do not pay it, that will have a negative impact on your credit score. On the other hand, if you are ordered to pay some or all of a joint debt, it may not be in your name but instead, in your spouse’s. If you do not pay this debt, your spouse’s credit score will suffer because it is in their name. Still, your former spouse can file a lawsuit against you to recover the debt you owe and pay it, which could also hurt your credit score.
Protecting Your Credit Score During Divorce
While certain actions or inactions during and after the divorce process may hurt your credit, there are steps you can take to protect it. First, close any joint accounts you opened with your spouse, in the event that your partner refuses to pay the debt they are responsible for. Also open and review your financial statements regularly to make sure there is no suspicious activity going on.
Our Family Lawyers in Orlando Will Protect Your Best Interests
If you are considering divorce, do not do it alone. At O’Mara Law Group, our Orlando family lawyers will advise on every aspect of your case, and help you secure the most favorable outcome. Call us today at 407-634-6604 or contact us online to schedule a consultation and to learn more about how we can help.