Beyond the emotional strain, a divorce can also impact your finances, including your credit score. While the divorce itself doesn’t change your credit rating, the financial decisions you make during this time can.
That’s because joint accounts, missed payments, and mismanagement of shared debt could leave bad marks on your profile. By taking proactive steps, you can protect your credit and keep your financial future secure.
Separate your joint accounts
One of the first things to do during a divorce is separate your joint accounts because shared credit cards and loans leave both parties responsible for the debt. If your spouse fails to pay, it can damage your credit rating.
Contact your lenders to close any joint accounts or remove your name. This way, you won’t be responsible for any new charges or missed payments from your ex-spouse.
Keep up with your payments
Maintaining a good payment history is one of the most important factors in protecting your credit score at all times. It’s easy to get overwhelmed during the divorce and let some things slip past your attention, but missing payments can cause your credit score to drop quickly.
If you and your spouse are still sharing financial obligations for the time being, make a plan to cover bills on time. For example, you can set up automatic payments to avoid missing due dates. If you’re responsible for certain debts after the divorce, design strategies for paying those off to avoid long-term damage to your credit.
Monitor your credit report
Regularly checking your credit report is another key step in protecting your credit score. Mistakes or fraudulent activity might happen, and you need to catch them early. By monitoring your credit, you’ll quickly spot any errors or new accounts you didn’t authorize.
Remember that you can get a free credit report from each of the three major credit bureaus once a year. This helps you stay informed about your credit status and ensures nothing is harming your score as you go through the divorce process.
Divorce alone won’t wreck your credit, but this sensitive time can leave you vulnerable to missteps that hurt your rating. As you prepare for the process, think about the various ways to keep yourself on solid financial footing throughout the experience.
