Accomplished Law Firm In Clinton, Sedalia, Windsor And Warsaw, Missouri

  1. Home
  2.  ► 
  3. Family Law
  4.  ► Divorce can have an impact on your credit

Divorce can have an impact on your credit

On Behalf of | Dec 28, 2020 | Family Law |

When people go through a divorce, they usually have similar things that concern them. Who gets the house? What will happen with the kids? How will we split up the assets and bills? All of these are important, but there’s one thing that’s often overlooked. This is how the end of your marriage will impact your credit.

There are a couple of ways that your credit might be impacted by the divorce. One of these is that your debt-to-income ratio might be affected. This could make it appear as though you have a higher debt load than you really do.

It’s also possible that you may fall behind on some payments while the divorce is in progress. This may be because you think your ex is paying a bill, but your ex thinks you’re paying it. It’s imperative that you and your ex plan for who is going to pay for what.

What does the divorce decree have to do with credit?

Divorce is a civil matter, so what the order stipulates is between you and your ex. Your creditors don’t have to follow it. This means that if your ex is ordered to pay a specific debt, the creditor may still hold you liable for it. They may report it on your credit report, so it will count as a late payment.

Some individuals combat this by trying to transfer debts into individual accounts. Some creditors might not go for this, but it won’t hurt to try.

It’s imperative that you work closely with your attorney to determine how specific components of the divorce will work for you. This enables you to find out your options and create a plan for this legal matter.