subject: Divorce and Your Credit Score [print this page] Divorce can adversely affect your finances and credit history. If you are planning to get a divorce or have just been through one, it is high time to evaluate the steps to maintain or rebuild your financial stability. If you want to escape financial difficulties in the future, it is a necessity to understand the relationship between a divorce and your credit score.
The fact is even the mostharmonious divorcecan ruin your financial security. Many couples combine all their finances such as bank accounts and even property ownership during their marriage. There are also many instances where one partner takes greater accountability when it comes to payment of the bills. These set-ups are the common causes of credit conflicts when you decide to get a divorce.
A divorce may be the end of your marriage but definitely not your shared financial responsibilities. If you not undertake appropriate actions after the divorce, you may still be held liable for the debts accumulated by your spouse during your marriage even without your knowledge. That is why all your financial ties with your spouse should be separated as soon as possible.
How to Save Your Credit after the Divorce
Many people make a mistake of getting a divorce without managing their finances first. This is because they tend to be triumphed by their emotions and fail to take into consideration to settle other important matters. Not settling financial issues with your spouse can cause your credit score to be affected negatively. If you are being held responsible for your former spouse's debts after your divorce has been finalized, it is important to do the following steps.
Your Credit Score Should be Checked
By checking your credit score, you can have a full grasp of the situation and you can see if the score has been affected by your divorce. It can be seen on your credit report if there are any joint debts with your former spouse that are being neglected. This will guide you in the succeeding steps that you should take.
Inform Creditors of the Divorce
You are not legally bound anymore to your ex-spouse's present debts if you have already separated or canceled all of your joint accounts. It is important to notify your creditors about this. You should also write a letter to them in order to speed up the updating of their file.
Having a low credit score can have a damaging effect on the quality of your life. By following these steps, you can prevent any further problems that divorce has already caused you.
Cancel or Separate Joint Accounts
You should separate, cancel or sell any accounts, debts and property that you still share with your former spouse. If your ex-spouse is willing to cooperate, this can be easily accomplished. On the other hand, if he or she refuses to help, it is high time to consult an attorney so that your financial ties can be separated once and for all.
