how-divorce-impacts-your-credit-score

How Divorce Impacts Your Credit Score

Divorce is mainly comprised of financial transactions. Dividing assets and debts and setting up spousal and child support payments all are about money and as such they can all have an impact on your credit score.

Getting divorced by itself does not have a direct impact on your credit score, however the financial arrangements created by the divorce can impact it.  For example, if you and your spouse have a joint credit card account and your spouse is ordered by the court to pay the debt and does not, you are still financially liable for that account and the lack of payment will appear on your credit report and negatively impact your credit score. Mortgages are another common way your credit score can be affected. The court could order your ex to be fully responsible for the mortgage. However, there is no easy way to get your name off that loan. If your ex doesn’t pay, your credit score will be negatively affected.

To protect your credit score, close all joint accounts as soon as possible, or at least freeze them so no further charges can be added to them. Remaining balances on joint credit cards can be transferred to sole accounts, but the court will need to order your ex to do this if he or she is unwilling. The best way to get your name off a mortgage is for your ex to refinance the mortgage into his or her own name.

Check your credit report every six months during your divorce and in the year after your divorce. Look for inaccuracies such as accounts that have been paid in full or closed still listed as active. Get a free credit report from annualcreditreport.com.

The Sampair Group provides experienced representation in all types of family law cases in in the Glendale, Mesa, and Phoenix areas of Arizona. Call our office today to discuss your case.