How a Divorce can affect your Credit Score
Divorce can change a lot of aspects of your life, including your credit. Before going through with the divorce you will want to talk to a divorce lawyer at Larsen Law Firm in Provo, Utah and learn just how much your life and your credit could be affected. Below are just some ways a divorce can take a toll on your credit score.
Joint Accounts are affected
If you have had joint accounts established throughout your marriage you need to realize that these accounts need to be managed and paid by someone. If these bills don’t get paid and they’re in your name, your credit will suffer. It doesn’t matter who is supposed to pay them, whoever’s name is on the account is going to deal with the credit issues. So when it comes to the credit cards and the car loans with both of your names on them, you need to make payments on any bills your ex-spouse isn’t covering, regardless of who’s responsible for them according to your divorce agreement. You can try to recover this money later by reporting the nonpayment to the courts — just don’t let it hurt your credit now.
You May be Unable to pay your Current Bills
Divorce can be messy and expensive, and now that you don’t have two incomes supporting you and your assets you might need to cut down your expenses. This will require you to figure out how much you need to make or how much you need to get rid of in order to make it financially. The unpaid bills you accrue after your divorce will have a huge effect on your credit score. The sooner you figure out how to cut back on your expenses the better.
Your Ex-Spouse is Compiling Credit on a Joint Credit Card
Sometimes divorces can lead to a very angry and revengeful ex-spouse. If they still have access to your joint credit card they may acquire some unwanted debt as revenge. The best way to avoid this is by making sure your ex is removed from as many credit accounts as possible. Make sure you are doing what you can to pay the bill and avoid creditors from coming after you.
Divorce can affect your life in many ways, your credit score being one of them. For more divorce advice you can trust the divorce lawyers at Larsen Law Firm in Provo, Utah. Call us today to schedule your first consultation.