Getting a divorce does not have a direct impact on your credit score. It is completely possible to get divorced without any effect on your credit score. However, in many divorce cases, there are indirect factors that can come into play. These factors can end up negatively impacting your credit score.
Splitting Joint Accounts
When getting divorced, it is important to go through any joint accounts held by you and your spouse. No matter what your divorce agreement may state, you still need to separate all of your joint accounts. In addition to the possibility of your accounts having an effect on each other’s credit scores, you really don’t want your ex-spouse to have access to your accounts.
Dealing With Lenders
If your divorce agreement states that one spouse gets the car and will continue to make the lease payments and later fails to do so, your credit could still suffer. If you were both on the paperwork for the lease and never got your name removed from the agreement, you would still be harmed by a defaulted payment, even years later.
While the debt would still belong to your ex-partner under the terms of your divorce agreement, you would share the damage to your credit.
It is essential to review any account that you have with an ex-partner and make sure that you no longer both have access. Even an Amazon account where you have a stored credit card can end up costing you if your ex-spouse decides to act vindictively.
Double-check all accounts. Even if you believe you are the sole owner of an account, it is important to make sure that they are not listed as an authorized user.
Try to Remain Civil
Divorce can be a very difficult time. Going through a divorce may affect a person’s future quality of life. No matter how challenging it gets, try to remain as civil with your partner as possible.
While some negative effects on the credit history of a person are merely accidental and result from a failure to remove a name from an account, many others are malicious. If your ex-partner decides that they want to take their anger out on you, they might try to do so by using your accounts to make purchases. They may try to mess up your financial situation in whatever way they can.
While these attacks can be effective in damaging a partner, they often hurt the aggressor as well, damaging their credit score along with the credit score of their ex.
Finding a way to remain civil during your separation will greatly decrease the chances of your ex lashing out in this manner, which is better for everyone involved.
Divorce Is Difficult Enough Without Worrying About Your Credit
If you are going through a divorce, it is likely one of the worst periods of your life. You had a roadmap for how your life would go, and now you are having to tear it up and enter uncharted territory. You are saying goodbye to a person who was once the most important person in your life, and you likely still have many strong feelings for them, whether you are the one who wanted the divorce or not.
You may have children with the person you are divorcing, which adds a whole other layer of complexity to the situation and makes it all so much more difficult.
On top of everything else with which you are dealing, you don’t want to be concerned about your credit score as well. Make sure to take all of the appropriate steps so that neither you nor your ex faces any unwanted surprises.
Damage to your credit score can have long-term consequences for the rest of your life. Always err on the side of caution when it comes to your financial wellbeing. You don’t want to be haunted by a stupid mistake for the rest of your life.