When two people decide to end their marriage, they probably realize that the process won’t be a simple one. Many soon-to-be-ex-spouses have to determine how to manage childcare, split assets or handle a marital home. Though many people expect that their finances will be impacted, they may not realize that their credit score could take a hit. Fortunately, experts have some advice for those here in Georgia and around the nation who want to minimize the effect that divorce can have on their credit score.
First, it is important to understand why a person’s credit score could be affected. It is not as though the status of being divorced shows up on a credit report. A divorce can come with big changes to a person’s finances, and that is where the potential impact shows up. If two ex-spouses share a loan or a joint account, for example, just because a divorce decree specifies who keeps the asset, if the other spouse’s name is still listed, that person is considered responsible for making payments. If the “owning” spouse fails to make payments, it can impact the credit score of the other.
Experts warn those getting a divorce to be sure and close any joint credit cards to avoid this problem. It is also advisable to freeze credit reports, particularly if the divorce is contentious. If at all possible, the two spouses should try and work together to separate or close shared accounts. Creditors may not be willing to give leeway to someone with late payments just because he or she has gotten a divorce.
Those here in Georgia who are concerned about how divorce could impact their finances may find that consulting a family law attorney is the best choice. Being proactive and working with an experienced attorney may be the way to reduce any potential negative effects. It could be the first step into a brighter future.