Keeping an eye on your credit score is one of the most important things you can do to ensure that you do not run into any preventable financial problems in the future. Your credit score affects many aspects of your life. Oftentimes, people going through a divorce do not realize the effect that the process has on their credit score, or if it has any effect at all.
Strictly speaking, the act of filing a divorce does not impact your credit score. However, many factors come to light that might impact your credit score as a result of your divorce filing. If your marriage is one with any significant amount of shared debt, you need to make sure that you handle the debt correctly so as to have the smallest impact on your credit score.
Your Divorce Decree Holds the Information You Need
In the divorce decree, the judge may clarify the financial responsibilities in the divorce. This includes child support, alimony, payment of the mortgage and other assignments of financial responsibility as the court sees fit. This is where the divorce process can affect your credit score. If you are ordered to pay child support and fall behind, this can adversely affect your credit. If you struggle to divide shared accounts or joint credit card debts, and one of you makes a poor decision regarding an account (such as running up a credit card), that can also negatively affect your credit. It is important to keep an eye on all shared accounts and joint financial obligations. They should be separated as soon as possible and the obligation for each clarified between the parties.
When it comes to credit cards and loans specifically, the lenders will expect the financial obligations to be paid and will hold the parties responsible who failed to pay. If it is a joint financial obligation, allocating the financial responsibility among the parties is beneficial to both account holders. This can be tricky in the case of a turbulent divorce, and is best settled as early as possible in the process.
Towson Divorce Lawyers at Huesman, Jones & Miles, LLC Advocate for Families
Having a skilled attorney on your side can make a huge difference, as they will know what to watch out for, and can help draft agreements to settle debt within a divorce. The Towson divorce lawyers at Huesman, Jones & Miles are experienced in all aspects of the divorce process, and here to help you navigate this difficult and complicated time of your life. We serve clients in the greater Baltimore area and throughout the state of Maryland. Contact us today for a consultation at 443-589-0150 or via our online contact form.