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Does divorce spell disaster for my credit?

On Behalf of | Aug 13, 2012 | Divorce

Couples in Texas divorce for a number of reasons. While the circumstances vary, one underlying trend is often that what once represented a stable and supportive relationship has broken down into a series of disagreements surrounding property division, child custody and alimony.

A large cause of concern for many divorcing Texas couples is the financial ramifications of The End. In some instances, divorce can manifest itself through unintended consequences regarding credit.

While the act of a divorce does not directly affect an individual’s credit, there are several manners in which a divorce can indirectly affect a divorcing individual’s credit if not properly handled.

In order to avoid this situation, there are a few actions a divorcing party should strive to complete:

  • Many couples share joint credit cards. Be sure to notify credit card companies to eliminate your name from any credit card that you are not obligated to pay.
  • If your spouse is keeping the car, it would be wise to have the car refinanced to remove your name from the title and loan. That way you are not penalized for missed payments.
  • In several instances, both partners are listed on the mortgage loan. If possible, it is best to sell the house. However, in many situations, this is not possible. In that case the spouse that does not pay will need to keep watch that the spouse that is responsible for payments remains up-to-date.

While there are several factors to consider when seeking a divorce, it is possible that the process can be smooth and relatively painless. Retaining experienced legal counsel that will deliver support and individualized attention may be the first step to taking control of a difficult decision.

Source: MSN Money, “How divorce affects your credit,” Aug. 9, 2012


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