Gumm & Green, LLP, Attorneys at Law
Take Your First Step To A New Beginning
855-707-4233 | 805-577-7657

How does divorce affect your credit score?

When it comes to divorce, most couples focus on the impact it has on their children, location of residence and income. This perspective makes sense considering these are immediate, life-changing consequences of splitting up a marriage.

However, other effects are just as important to be aware of to understand and prepare for them. One of these is your credit score. What exactly does divorce do to your credit?

Indirect impact

Simply filing for divorce does not automatically lower your credit score. Certain steps you take during the process may have a negative impact. If you have a highly-contested divorce, you will have a larger bill in the end, both from your attorney and from court fees. Using a credit card or loan to pay these expenses can hurt your credit if you do not pay them off quickly. Furthermore, dividing specific assets, such as the house, may also affect your rating. An income that is now lower due to asset division or child and/or spousal support payments may also hurt your credit.

Joint accounts

Another way your credit may change is by not closing joint accounts or removing one of the names from them. A divorce order may legally end your relationship, but it does not legally end other contracts you may have made with your spouse. You have to separate your finances on your own, otherwise, you can still be accountable for your ex's financial choices, including debt. Creditors may pursue you if your ex does not pay off debts for accounts with which you are still associated.

Preparation

It is in your best interest to separate your finances as soon as possible, no matter what stage of the divorce process you are in. You may need professional help, such as from an accountant, to ensure you do not miss an account or to review options for those you cannot remove a name from.

No Comments

Leave a comment
Comment Information

Get Support Today

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Email Us For A Response

Office Location
5743 Corsa Avenue, Suite 111
Westlake Village, CA 91362-6440

Toll Free: 855-707-4233
Phone: 818-707-4233
Phone: 805-577-7657
Fax: 818-707-4262
Map & Directions

Local Numbers