There are many financial issues to consider during divorce. The obvious issues involve dividing assets, splitting childcare costs and figuring out spousal support if applicable. But some individuals don’t realize that, during or after divorce, one’s credit score may change. Keeping up a good credit score can be difficult, so it’s important to understand when and how divorce can lower a credit score.
Credit score changes
It’s always a good idea to check one’s credit score regularly. If there is a discrepancy, it could be due to an error or other problem that’s better dealt with quickly. During a divorce, changes in financial circumstances can affect credit score. It’s estimated that around 42% of men and 54% of women see a decline in their credit score post-divorce.
During a divorce, parties must come to an agreement on a payment schedule for joint expenses. The courts may order a certain party to pay a bill, but if the account is in both names, the credit score of both parties can decline if bills go unpaid. Closing joint credit cards may seem like a good idea to separate finances post-divorce, but this can also lower one’s credit score.
Dealing with finances during divorce
No matter the reason for a divorce, finances are always important. Courts can order one party or the other to pay down debts, but if those bills aren’t paid, it can negatively affect the other person on the account. When going through a divorce in New Jersey, it’s important to seek legal advice from an experienced family law attorney. They can provide information on how to understand the financial implications of the divorce process and help one better understand their financial obligations post-divorce.