If your credit is in rough shape, it might be the result of a bad relationship.
Divorce can take a financial toll as well as an emotional one, leaving one-half of the former partnership with blemishes on their rating or perhaps no credit history at all.
According to Experian, many people are confused by the role of the divorce decree, assuming if it specifies who is responsible for accounts opened during the marriage, it also breaks the contracts with lenders.
Not so. Unless they agree to alter the agreement, the lender will hold both parties responsible. An angry, vindictive spouse also might intentionally wreak havoc on a partner’s credit by making large purchases on joint accounts.
One partner might not have established any credit at all during the relationship.
Some studies show financial issues often are actually the source of marriage troubles that lead to divorce. There are steps you can take prior to a divorce, which can protect a person’s credit and might even save a marriage, according to Investors.com:
- Have a credit card in your own name.
- Close jointly held credit cards.
- Check your credit report.
- Get a post office box.
- Restrict access to accounts.
- Protect yourself from a lazy or irresponsible ex-spouse.
If the horse is already out of the barn, there is reason for hope. If your credit is damaged as a result of a divorce, help is available to restore it. But you have to take action right away. Don’t put it off.