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Divorce and Your Credit Score

There are so many different issues to consider when filing for divorce in Pasadena that many people fail to think about how ending their marriage will affect their credit score. However, this is an issue worthy of consideration if you'll be looking to make a major purchase such as buying a home or car shortly after you divorce.

The act of getting divorced itself doesn't technically affect your credit score. There's no automatic point deduction for ending your marriage, but the behaviors involved in the divorce process can often have a significant impact on your credit score.

If you have accounts with your spouse where you are a joint account holder, an authorized user, or a cosigner, you must deal with all of these accounts separately to get the debt paid off or transferred into just one person's name. If your name continues to be listed on the account, it will continue to affect your credit score and the lender could come after you if your ex doesn't pay what is owed. Your credit score, as well as the credit score of your ex, will drop dramatically if these debts aren't paid as promised.

Lenders do not have to abide by the terms of your divorce decree, so you're not off the hook just because the judge said a debt was your ex's responsibility. For this reason, most lawyers recommend using marital assets to pay off as many marital debts as possible. This gives you the best chance at a clean financial break from your ex.

If you've had a messy divorce, identity theft is another possible concern. Your ex probably knows most of the personal information needed to open an account in your name, such as your birthday, Social Security number, and your mother's maiden name. It is a good idea to invest in an identity protection service that can monitor your credit report and alert you to any suspicious activity.

How Can We Help?

If you are in need of legal representation during your divorce, please call our office at (626) 683-8113 or email us at info@PasadenaLawOffice.com. Our team of skilled Pasadena family law lawyers will make sure that the settlement you receive is in your best interests.

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