ivorce is never easy, and it can affect almost every aspect of a person’s life. However, one thing many people fail to consider is divorce’s effect on credit scores. A divorce cannot directly affect a person’s credit because creditworthiness isn’t determined by marital status. However, indirect effects of divorce can decrease credit score as described below.
An Ex-Spouse Fails to Pay Joint Bills
If a person shares a joint account with an ex-spouse, such as a credit card or mortgage, someone still has to pay after a divorce. Even if a judge rules the other spouse has to pay the bill, it’s important for a client to ensure the bills are being paid. If a person pays bills because the other spouse refuses to, he or she can hire a professional divorce lawyer in Milwaukee WI, to recover the money later.
Inability to Pay Bills After a Divorce
If a divorce is particularly messy, a client may spend significantly on a Divorce Lawyer-; and he or she may not have the money to pay bills. Or, if a person was a stay-at-home spouse, he or she may not have the money to pay everything. Either scenario can cause negative effects on credit if late payments or high spending is the result.
There are two ways to get more cash to pay down debt: income must be increased, or spending must be decreased. Clients can work a second job and cut bills by limiting unnecessary spending on luxury items.
A Vindictive Spouse can Access Credit Accounts
While some spouses can divorce without acrimony, many cannot. If an angry spouse has access to a client’s credit account, he or she may intentionally drive up debt. If the debt cannot be paid, the client’s credit score can suffer. To minimize the damage, the other spouse should be removed from individual credit accounts.
If a person is enduring a divorce, a Divorce Lawyer in Milwaukee WI, can work to mitigate damage to his or her credit score. By ensuring that bills are paid, by budgeting to facilitate timely payments, and by removing the ex-spouse as an authorized credit user, a person can protect their credit. Perhaps most importantly, it pays to stay civil-;the better ex-spouses get along, the less likely they are to damage each other’s credit standing.
