Divorce fuels all sorts of conflict between exes. Aside from the severed emotional ties, you have to worry about who gets the car and the kids. And to make things more complicated, you have shared credit.
Getting a divorce won’t change the fact that you co-borrowed a loan. Usually, exes divide their debt, regardless of who is primarily responsible for the credit. Each spouse remains responsible, despite the judge’s orders.
There’s more to credit scores than just predicting divorce, a blog from Divorce Matters claims. Unfortunately, co-borrowers will suffer if one of the spouses has defaults. Rather than face the bad end of debt, it’s best to assume responsibility for credit you owe.
Credit Scores and Sour Marriages
Divorce takes a big hit at your finances, especially on credit scores. For starters, expect your income to drop and struggle with current expenses because of the separation. Keeping up with bills becomes an extra challenge.
Also, most couples have at least one joint account before the divorce. Not paying the debt immediately results in one of the spouses claiming responsibility. There have also been cases of ex-partners committing identity theft, borrowing the other spouse’s information.
Close ALL Joint Accounts
If you don’t want your ex hounding you for credit scores, close all joint accounts as soon as possible. Closing all accounts before the proceedings makes things easier because it forces your former spouse to cooperate with you. Some banks might require primary account holders to close the account. If it’s not your name on it, you’ll need the help of your soon-to-be ex-partner.
Stressed, Divorced, and a Lousy Credit
When you’re about to enter proceedings, it’s natural to feel sorry for your finances, especially if you have bad credit. Fortunately, it’s not the end of the world. Like life, you deserve a fresh start.
You can’t change the past; it’s better to move forward by being responsible with bill payments and improving current credit scores. Recent updates have the best impact, so keep good accounts active.
Separations need not be the end of the world. By being responsible on your part, bad credit is nothing but a mere memory — just like your ex.