Don't Let Divorce Affect Your Credit Score

Divorce can break your heart, and ruin your credit. Before parting ways, divorcing couples must untangle any assets acquired during the marriage. Ask The Advisor put together a useful guide for any couple unwilling to wait until death to do them part:

  • Assess Your Responsibilities: Be aware of your liabilities, and make sure you and your ex-spouse take sole responsibility for your respective assets.
  • Dissolve All Joint Accounts: Open your own accounts and dissolve any joint accounts. Don’t let any property or account stay bound to more than one name.
  • Sell The House: If the mortgage bears your name, you are responsible if the house goes into foreclosure. Sell the house and split the profits instead.
  • Divide Any Shared Cash: With the help of lawyer, split any remaining liquid assets.
  • Document Everything: Courts love documents, as will any creditor that pops up down the road.
  • We also asked our resident divorce expert for advice:

    Divorce is more than a legal event; it is also financial reallocation of the divorcing couple’s assets and liabilities. Unfortunately, it is not uncommon for a former spouse to discover after the divorce that they were unaware of all the marital assets that should have been shared, or an ex-spouse’s debt that they remain responsible for. Therefore, it is imperative that divorcing spouses each consult with an attorney to ensure the deal they bargained for is truly what they want to get.

    Even if you follow all these steps, and consult with an attorney, it’s still a good idea to keep a close eye on your credit report to ensure that creditors aren’t holding you responsible for your ex’s debts.

    How Will My Divorce Affect My Credit? [Ask The Advisor]
    (Photo: billjacobus1)