Divorce is not easy. For one reason, divorce results in many challenging emotions. It is common to end up feeling afraid and insecure about the future. After all, divorce often causes a person’s living situation to change in several ways. One of the changes that people often fail to consider, however, is that divorce can negatively impact an individual’s credit score.
While the divorce process itself will not directly impact your credit score, the state of your finances immediately following the end of a marriage can certainly impact your score. The following will review some of the most commonly overlooked ways in which the divorce process can end up impacting an individual’s credit score.
Failing to Adjust to a Single Income
Divorce can greatly impact a person’s finances. Rather than depend on two incomes, after the divorce process, a person often must get accustomed to a much lower household income. This decrease in income can provide substantial challenges with a person’s finances unless that individual adequately plans for the change.
This is why it is a good idea to perform detailed budgeting to make sure that you have an adequate amount of finances to pay your various monthly expenses. If you do not have time to meet these expenses every month, it is time to consider downsizing.
Former Spouses Who Refuse to Pay for Joint Bills
The people to whom you owe money care little about divorce if you and your former spouse are jointly responsible for a debt. Instead, all these parties care about is getting the compensation that they are owed. If you and your former spouse have any joint debts, you will continue to be responsible for these amounts even after your divorce is finalized. You will continue to be responsible for this debt until that amount is repaid.
A Former Spouse can Still Access Your Financial Records
Ideally, after a divorce, each spouse would be able to move on without experiencing any negative emotions. It is common for former spouses who still have access to financial accounts to create trouble. If your former spouse has remained hostile after a divorce and still has access to your financial records, there is a possibility that the former spouse might end up accruing various debts in your name.
To avoid this problem, it is critical to make sure to remove your former spouse from all of your financial records as soon as possible after a divorce to avoid any harm to your credit score.
Speak with an Experienced Divorce Attorney
If you are navigating a divorce, it is critical to think about how this process will impact your life. While it might be easy to focus on your emotions during this difficult time, it is also a good idea to be mindful of things like finances.
Because the divorce process is complex, it can help greatly to retain the assistance of an experienced divorce attorney. Contact Vayman & Teitelbaum, P.C. today to schedule a free case evaluation.