Would divorce affect my credit score?
Date: Fri, 03/26/2010 - 20:51
I'm currently going through the process of divorce. I know I have to take a beat on my wallet as the household income would reduce. Anyway, we have quite a substantial amount of debt on credit cards, some are in both of our names and some are individual. My husband has never been very smart with money and his credit is a mess. I am worried whether his debts would affect my credit or not. What can I do so that my score doesn't get hurt?
Well a divorce can hurt your credit score if you are unable to m
Well a divorce can hurt your credit score if you are unable to make payments with your income. It won't be a problem if you stay current on your financial obligations. If you are a cosigner, the divorce may hurt your credit score if things are not discussed beforehand.
But you can protect your finances before divorce. Firstly, be aware of all the accounts you are accountable for, such as mortgage loans, bank accounts, credit cards and utilities. Try to divide shared cash and dissolve/cancel/separate all the joint accounts. If you own a house it's better to sell it off. Do get things in writing and don't forget to notify your creditors about the divorce.
