Divorce isn’t only an emotional process that can leave you feeling drained; it can also wreak havoc on your finances, too. If you have joint accounts, loans, and credit cards—as married couples do—you need to protect your investments from separation. Here’s what you need to know about how divorce and your credit score may be related.
You’re Equally Responsible for Debt
If you and your spouse share a name on a joint credit card, loan, or other common expenditures, you need to take action to pay debts and close accounts immediately. Even if a court order distributes debt in a particular manner, if an account is left open and default on a payment occurs, you will be held jointly liable if your name is on the account.
Get a Credit Report
Bankruptcy and divorce often go hand-in-hand. Whether it’s a mortgage payment that you now can’t afford without your ex-spouse’s income or a single credit card bill that goes unpaid, divorce can cause your credit score to take a nosedive. To ensure that you know exactly where you stand financially and for what you’re liable; get a full credit report.
Your credit report will provide you with a rundown of every debt that you have. Again, close any joint accounts and make sure you promptly pay existing balances.
Avoiding Unnecessary Debt and Bad Credit
Ways that divorce can ruin a credit score.
- The person whose name is on the joint bills doesn’t pay them
- You don’t have enough money to make payments on time without your ex’s income
- One ex retains the others’ credit card information and charges huge debt on the cards
Avoid Dallas divorce debt by taking action to decrease your expenses, removing your spouse’s name from your bank accounts and credits cards, and paying off joint debt quickly.
Divorce and Asset Division
Remember, when you get divorced, your assets—including your debt—will be divided in a way that’s fair and equitable to both parties. But even if the debt is divided, if your name is still on an account, you’ll be held responsible for any unpaid bills.
To ensure that you get a fair division of assets and debts, which can be a big determining factor in regard to your financial future, make sure you have an attorney on your side who can guide you through divorce negotiations. The Texas Divorce Lawyer can represent you through the process. Contact us today for a consultation at 214-265-7630.