Are you worried that a divorce may hurt your credit score?
It is true that in some circumstances, your credit can take a hit following a divorce. This is because many relationships involve joint credit accounts, which are closed following the dissolution of a marriage. Remember, sadly, if you are a joint owner, cosigner or an authorized user on a credit line, the closing of an account can negatively affect your credit score.
Additionally, it should be noted that if you do not take steps to close a credit line following a divorce and/or you do not ensure that your name is removed from it, you could potentially be held liable for any charges, interest or issues that may arise.
A divorce decree alone, stating that you are no longer allowed access to a credit line or are not responsible for paying it, does not ensure that the contract you have with a lender is over. In some cases, credit-reporting agencies simply do not care about a divorce. They care about payments being made on time.
Keep in mind, if you do not take steps to protect yourself, if your former spouse fails to make payments towards a line of credit, your credit score could be negatively affected. This is why you should always pay attention to your credit reports following a divorce.
Hashing Out Your Finances Following a Divorce
As we mentioned above, debts linked to you under joint or shared accounts may be the sole responsibility of your ex following a divorce; however, if he or she does not make payments, you could be greatly impacted.
Speak to an attorney if you have concerns about your finances following a divorce. Make sure that you are protected—in some cases, it is not unusual for a vindictive former spouse to refuse to make payments on a formerly shared account with the intent of punishing the other party. If this occurs, you may have to return to court to seek relief.
Make sure that you receive professional legal advice if you are seeking a divorce or have issues following the process, as the failure to do so could prove incredibly costly. Continue to follow the family law section of our blog for more information.
Kantrowitz, Goldhamer & Graifman, P.C. – Divorce Attorneys