How Does Divorce Affect My Credit Score?

 Posted on October 16, 2023 in Divorce

Your credit score may be one of the last things you think about when going through a divorce. There are so many important things to think about, such as property division, conservatorship, support, and just the headache that divorce can naturally bring with it. Divorce may not damage your credit directly, but related financial problems could. When considering divorce, consult an attorney who can help you cover all your bases and keep you on track to avoid future complications.

What Are Some Indirect Impacts of Divorce On My Credit Score?

Marital status does not factor into your credit score. However, certain duties performed or bills paid can be a cause for concern once a divorce is finalized. Missing payments is the primary reason for a dip in a credit score. It is easy to forget how much the other spouse has been paying in financial expenses until it hits you in the face.

Joint accounts and debts can cause innumerable problems down the road. Things such as car payments, credit card bills, mortgage payments, and other expenses you and your ex-spouse both took care of can now become overwhelming expenses for you. In contrast, your ex-spouse closing out joint credit card accounts will impact you negatively on other expenses you were hoping to use those accounts for.

Although it is quite rare, a vindictive, petty, or vengeful spouse could also allow expenses to get out of hand and ruin your credit. Anything you opened in your name for them or are supposed to pay for jointly can now be used to hurt you financially.

How You Can Protect Your Credit Score During a Divorce

Your credit score may not come out of a divorce unscathed, no matter how well you try to protect it. That being said, there are a few things you can do to better protect your credit score from harm:

• Minimize your debt
• Remove your spouse’s access to your accounts
• Open new accounts in your name that only you can access
• Make existing debt a priority
• Attempt to divide joint accounts amicably
• Monitor all credit reports, especially joint ones

Rebuilding Your Credit Score After Divorce

Rebuilding credit is never really that easy. It often takes months or even years to pull your head above water, depending on how low your credit score is. Yet, there are plenty of things that you can do to put your score back on track:

• Continue making your payments
• Deal with the larger payments owed first
• Continue to monitor all credit reports
• Create your own credit history
• Keep the amount you owe to a minimum
• Make adjustments to having only one income
• If applicable, change your last name before establishing a new credit

Contact a Harris County, TX Divorce Lawyer

Texas is a community property state. So, any debt owed during a divorce will now be split evenly between you and your soon-to-be ex. A skilled Houston, TX divorce attorney from The Cusic Law Firm, P.C. can strongly advocate for you before and during divorce proceedings. Contact the office at 713-650-1866 for a free consultation and discussion of your legal marital affairs.