Going through a divorce is an incredibly difficult experience, and you’ll find that this can pose just as many legal and financial issues as it does emotional issues. One area that can be impacted heavily that you may not have considered is your credit score. If this reflects your circumstances, you’ll want to keep reading to learn what can happen to your credit score during a divorce and why it’s in your best interest to consult with experienced Somerset County property distribution attorneys to assist you during these complicated times.
How Can a Divorce Impact My Credit?
When you and your spouse file for divorce, understanding what will happen to debts is critical. Generally, you’ll find that in New Jersey, martial debts are divided according to the state’s equitable distribution method. This means the courts will examine who opened the account and whether or not one party benefitted more from the debt. If this is the case, one party may be assigned more debt than the other when the court divides the remaining balance. It’s also important to note that in some instances, if your spouse attempts to run up credit cards before the divorce, this can be considered marital waste and they may be held solely responsible for the purchases.
It’s imperative to understand that though filing for a divorce in and of itself will not have a significant impact on your credit score, the debt accumulated in your marriage will. For example, you’ll find that if your ex fails to pay a bill on time for an account on which you are an authorized user or co-signer, it can impact your credit score, even if you are not liable for that particular debt as part of your divorce agreement.
What Can I Do to Shield My Credit Score During My Divorce?
If you are worried about what will happen to your credit during your divorce, it’s important to understand the steps you can take to minimize potential issues. Generally, the first thing you’ll want to do is remove yourself as an authorized user on any credit cards owned by your ex-spouse and remove them from any accounts they are authorized on. This can help reduce your liability for large purchases they make and fail to pay on time.
You should also make it a habit to regularly check your credit score, as this can help you stay on top of accounts with outstanding balances and inform you of any changes to your credit that you may not have noticed, especially if it is due to actions made by your spouse.
Finally, you should consider freezing your credit accounts until you have finalized your divorce. This can help prevent your spouse from opening accounts in your name with your information.
When you’re going through a divorce, ensuring you handle the financial aspects as efficiently as possible is critical in ensuring you are set up for success following the dissolution of your marriage. At the Siragusa Law Firm, our dedicated legal team will do everything possible to assist you during these difficult times. When you need help contact us today to learn how we can fight for your best interest during your divorce.
