Everyone knows that divorce can impact just about every area of your life. What they may not realize is that even your credit report may take a hit in the divorce.
One thing that people don’t usually know is that a divorce is a civil matter. Creditors aren’t a party in that case, so they aren’t bound by the terms of the divorce settlement. This means that creditors can still come after you if your ex is supposed to pay for a marital debt and fails to do so.
How can you protect yourself?
For some people going through a divorce, the best protection against unexpected hits to their credit report is to liquidate assets to pay off the debts before the divorce is final. This takes away the chance of your ex not paying these accounts.
Another option for some is to have each party open new individual accounts and transfer balances to that individual account. This is usually only possible if their credit score is suitable and they have an acceptable income.
If you have to rely on your ex to pay bills they’re ordered to pay, be sure you keep track of your credit report. While you can’t prevent negative items from appearing, you might be able to mitigate the damage if you find out about the negative items early.
Making sure that you have a solid property division settlement is important because the more financially stable you are, the better you’ll be able to handle issues if your ex fails to pay things as they should. Understanding your option can help you to make the decisions that are in your best interests.