Not all divorces are directly related to finances. There are many reasons why a couple may choose to part ways, but in most cases, the financial situation of both parties will be impacted by the divorce. What many people don’t realize is that divorce can negatively affect credit score. There are ways to avoid this, and it’s important to be prepared so that there are no surprises on an upcoming credit report.
What lowers a credit score?
In general, a late payment will cause one’s credit score to go down. When a couple negotiates finances during divorce, including their joint bills, it’s important to understand how those bills will be paid once the divorce is finalized. When one party is assigned a bill by the courts, the other party can still be held liable for the bill if his or her name is on the account.
In this situation, even the person who isn’t supposed to pay the bill based on the court rulings can see a negative impact on his or her credit report. The best way to avoid this is to monitor credit reports regularly to be sure there are no unexpected changes. Credit scores can be important when attempting to secure a loan for a house or car in the future. Divorcees should keep a close eye on their credit score after a divorce to be sure they don’t experience a decline based on the actions of their ex-spouse.
Seek legal counsel
Divorce is complicated and with it comes many feelings and concerns. Both parties should be aware of joint expenses and understand who is supposed to pay the joint bills after divorce. It’s always beneficial to speak with a Maryland divorce attorney to get advice on navigating the financial aspects of divorce and learn ways to prevent negative financial outcomes after the divorce is final.