There are many different horror stories out there about people who have
had their credit ruined in their
divorce. From wives maxing out their husband’s credit cards to husbands
who have squandered the life savings on a gambling debt, there are all
sorts of things that can happen during your divorce that can adversely
impact your credit. Some of the worst stories feature angry spouses who
have deliberately destroyed their ex’s credit rating out of spite.
However, this sort of behavior can have unintended consequences. A damaged
credit rating can affect your ability to purchase a home or automobile,
or obtain a credit card for emergency purchases. Many, times, it is the
children of who are most affected when one spouse tries to ruin the other’s
credit rating. When one spouse has a credit score that has been sabotaged,
the children can be forced to live in subpar conditions.
In states with equitable distribution laws, both spouses can be responsible
for any debts that have been accumulated throughout the marriage. This
means that a spouse who attempts to destroy their ex’s credit rating
is actually hurting their own rating in the process.
What Can I do to Protect My Credit During Divorce?
Divorce can make people do irrational things. Often, people who are embattled
in a difficult divorce aren’t thinking straight. It is important
that you are vigilant about protecting your credit before and after your divorce.
You should do the following things to ensure that your credit rating is
- If you can, pay off and close out any joint credit cards that you share
with your spouse. You can also request to have your spouses name removed
from your accounts. Your goal is to make a clean break, so make sure you
cover all of the credit cards you have opened with your spouse.
- If you and your ex own a home together, you should think about selling
it. Not only can you split the sale with your spouse, but selling your
home will eliminate the risk of one spouse failing to keep up with the
mortgage payments. Missed mortgage payments have a substantial impact
on your credit.
- If your spouse ends up keeping your home, make sure that they refinance
the mortgage under their name. When a spouse doesn’t refinance the
mortgage, it can leave the other spouse financially bound to the property,
which will affect their credit.
- You should check your credit report before and after the divorce to see
which names appear on each account. Take note of any suspicious activity
that appears on your credit report.
- If you can, try to get a collaborative divorce. This type of divorce can
be less expensive than a contested divorce. Divorce can be costly, and
you don’t want to have to rely on credit cards to pay for your legal expenses.
Do you have more questions about protecting your credit in divorce? Contact our Bowling Green divorce lawyer
to find out how we can help you today.