Making the decision to end a marriage does not directly affect your credit score. After all, a credit score does not include information about whether an individual is married, separated, or single. But when you are navigating a divorce, it is important to keep in mind that there can be an impact on your credit score and future finances as joint accounts will need to be assessed, reviewed, and distributed. To protect yourself from any surprises, taking preventative steps is advised.
Joint Debts, Co-Singers, and Access to Resources
It is common for married couples to put both of their names on loans and financial accounts. Agreeing to loans together is part of how many couples access the mortgages they are seeking or secure a student loan they need for one or both people to receive an advanced degree. But if a marriage falters, the debts will need to be untangled, and sometimes the individuals within the couple do not agree who should take responsibility for which debt.
When separating and planning to divorce, consider doing the following:
- Make a list of joint accounts
- Create a plan of when joint accounts will be closed
- Open personal financial accounts solely in your name
- Remove your spouse as a user on your accounts where they have authorization to perform transactions
- Keep an eye on credit reports, freezing credit may be appropriate
An experienced divorce lawyer can share with you a complete list of steps you can take now that will smooth the process. Removing your spouse as an authorized user on your personal credit card today may be a way to avoid unpleasant conversations in the future surrounding who is responsible for debts incurred while you were separated. For example, you may not want to pay for the furniture your spouse buys for their new apartment, which they could charge to your card if they are authorized to do so.
When you connect with a Tampa family lawyer, an attorney can walk you through your options moving forward, including how assets and debts could be distributed and what impact that could have on your credit score. Having all of your divorce concerns addressed now means you can avoid missed payments and ongoing miscommunication with your soon-to-be-ex spouse. To secure a strong financial footing, have all of your accounts and assets reviewed by a professional.
Are you concerned that divorcing will negatively impact your credit score and hinder your future plans?
