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Protecting a credit score after divorce

On Behalf of | Sep 25, 2019 | Divorce |

A person’s credit score is not affected by their marital status. However, if a couple in Texas or any other state decides to get a divorce, joint accounts could negatively affect their credit score. A vengeful ex-spouse could create financial chaos that damages a person’s credit score, and even simple confusion in the case of an amicable divorce could do the same.

It is advisable to take preventative action in order to separate joint accounts before a person finalizes their divorce. Before a person closes a joint account, they would first want to apply for their own cards. The reason why it is important to do this is because a temporary credit score drop could negatively affect an individual’s qualifications when obtaining a new card.

After finding a card that is easy to pay off at the end of each billing cycle, a person should start making small purchases on the card every month and paying off the balance in full with the goal of building a credit profile. A trusted cosigner or a secured card that requires an initial deposit may be a good option for individuals who have trouble qualifying for standard credit cards.

The next step a person should take to protect their credit score after a divorce is to work their way through joint debts. If possible, debts should be paid off straightaway. Joint accounts should be closed. If account balances cannot be fully paid off, it may be possible to put the accounts in an inactive status. This means that no more charges can be made on the account. Then, a payment arrangement can be worked out with an ex-spouse in order to continue to pay off the debt.

The divorce process can lead to a variety of financial struggles. Being proactive and taking practical steps can help a person to protect their assets and credit score. A divorce attorney may offer legal advice regarding property division, alimony and other legal issues relating to the end of a marriage.


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