Going through a divorce is a time of major changes in every aspect of life. Some people who are in this position don’t realize just how far those changes can go. One area that it may affect that they may not think about is their credit history.
The property division that occurs during the divorce is the primary way that the divorce can have an impact on a person’s credit report. This should be at the forefront of a person’s mind as they work through this aspect of divorce.
Divorce is a civil matter
A divorce is a civil matter, which means that only the two individuals divorcing are bound by the terms of the divorce. Creditors aren’t a part of the case, so they don’t have to follow the divorce decree. This means that even if the court orders one party to pay a specific debt, the creditor can still hold both parties responsible for it if it is a joint debt. If the party who’s supposed to pay the debt doesn’t, the creditor can report the non-payment to the credit bureaus for both parties.
Combating possible credit effects
One of the most effective ways to prevent a divorce from impacting a person’s credit score is to liquidate assets and pay off the debts. This prevents the debt from being delinquent. It’s not always possible to do this, so both parties must carefully consider the potential implications of dividing the debts in specific ways.
The considerations about credit matters are only one of the things that you must think about during divorce. Working with someone who can assist yo