Divorce and Credit

On Behalf of | Mar 6, 2015 | Divorce

A divorce can end up impacting a person’s finances quite a bit. Thus, there are many financial things it can be important to pay attention to when going through a divorce. One is the condition of one’s credit.

Sometimes, a person’s overall credit situation takes a hit after a divorce. Certain research indicates that nearly one-third of divorcing individuals see a decrease in their credit score following their divorce. A credit score drop can make a variety of things more difficult for a person, including buying a car.

Thus, when divorcing, it can be important to be mindful of what sorts of things could have credit impacts and to take proper steps to try to keep one’s credit in solid shape. 

One thing in a divorce that can have an impact on a person’s credit situation is what happens with any marital debt the couple has. If a person ends up with more debt than they can reasonably handle getting assigned to them in the debt division in a divorce, they could face major debt struggles after the divorce, which could lead to a weakening of their credit. Thus, what the debt division is in a divorce can be a very important thing. 

Consequently, when it comes to debt division matters in a divorce, a divorcing individual may want to seek out the advice of a divorce attorney. Such lawyers can help individuals understand what impacts the financial matters in a divorce, such as debt division, could have and assist them in trying to resolve divorce financial matters in a way that leaves them in a position where they can have a strong financial future.

Source: CBS Money Watch, “How divorce can ruin your chances of buying a car,” Bruce Kennedy, March 5, 2015