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Divorce can impact your credit score

Divorce can impact every aspect of your life. You will have to decide who get what, how the children will go between your and your ex, and how you will set up your future. One thing that you might not realize can be impacted by a divorce is your credit score; however, it is very possible that your credit history will be impacted after the divorce. What stands to be seen is if this impact will be positive or negative.

When you are dividing the property during your divorce, you will have to divide assets and debts. Here is where the divorce can impact your credit -- if your ex is ordered to pay specific debts and doesn't, that can affect your credit report if your name is still on those accounts. If your ex doesn't pay, the creditor could come after you for payment. At that time, you would have to decide if you want to pay up or if you are willing to take the hit to your credit score.

The divorce between you and your ex is a civil matter. This means that creditors don't have to abide by the property division settlement. For this reason, it is best if you and your ex close down joint accounts and try to transfer the balances to individual accounts. This would make you accountable for the accounts you are supposed to pay, but you wouldn't necessarily be accountable for your ex's accounts.

There are some cases in which moving debts to individual accounts might be difficult to impossible. Your credit worthiness depends partially on your income, so there is a chance that you or your ex might not qualify for credit after the divorce. In that case, you should prepare yourself for a hit to your credit just in case your ex doesn't pay the debts he or she is supposed to pay.

Source: FindLaw, "Credit and Divorce," accessed Dec. 02, 2016

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