If you’re ending your marriage with shared financial obligations like a mortgage, credit card debt or an auto loan, protecting your credit score should be a top priority. The last thing you need is missed payments, unexpected debt or a plummeting credit score, which could complicate your post-divorce life.
While many assume that a divorce automatically separates financial responsibilities, creditors don’t see it that way. If your name is still on a debt, you’ll remain responsible no matter what the court says. Taking these proactive steps can help prevent financial headaches later.
Know what you owe
Before anything else, get a clear picture of your shared debts. Make a list of everything you owe as a couple and pull your credit reports to ensure nothing slips through the cracks. You do not want to overlook anything that could haunt you later on.
Close joint accounts
Leaving joint accounts open during divorce is risky. If your ex misses a payment, it’s on you, too, and your credit score will take a hit. Work with your ex to pay off and close these accounts as soon as possible. If that’s not an option, contact the creditor to remove your name or change the account to individual ownership.
Keep making payments
Divorce negotiations can drag on, but don’t let that delay your payments. A single late payment can hurt your credit score for years. If a debt is still in your name, pay it even if you expect your ex to reimburse you later. You can always sort it out legally afterward.
Regularly monitor your credit score
Even after the divorce is final, keep a close eye on your credit report. Unexpected charges, missed payments or lingering joint accounts can still cause problems. You can catch issues early and fix them before they tank your score.
Seeking legal guidance can help you understand your rights and obligations during the divorce, negotiate a fair debt division and protect your financial interests. It can also help ensure you take proper steps to separate financial ties from your ex.