Many adults spend a lot of time getting their credit score where they want it to be. If they’re married and make the decision to divorce, they may not want to think about how it will impact their credit score.
There are several points that you need to remember when you’re divorcing and trying to protect your credit. These might help you to soften the blow your credit score takes.
Your divorce agreement doesn’t matter to your creditors
The creditors who hold your accounts don’t have to abide by the property division order from the court. These orders are civil, which means that you and your ex are the ones bound by them. Creditors can still hold you responsible for accounts if your ex doesn’t pay, even if the debt was assigned to your ex. Because of this, many people who are going through a divorce choose to sell off assets so that debts can be paid off and each spouse has a fresh start with the divorce.
The changes in your income could also affect things
When you’re married, both incomes support the home. When you’re divorced, you’ll have to cover everything yourself. This could mean that you can’t handle the debt load that you were able to manage during the marriage. Take this into consideration when you’re trying to determine a new budget.
Anyone who’s going through a divorce should think carefully about how the division of debts might impact them. This may help them to make decisions as they’re going through the property division negotiations. It’s important to remember that you have to make decisions based on what’s best for you now, as well as in the future.