Divorce has a lot of financial consequences: you might find that your credit takes a hit, your budget is affected and it’s harder to maintain the same standard of living you once enjoyed. Preparing for financial consequences ensures that you hit the ground running once the divorce is final.
People often wonder whether divorce shows up on their credit report—after all, they likely shared finances with their spouse, and a spouse’s actions can affect your credit. Here’s what you should know about divorce and credit.
Divorce and credit reports
Divorce is not something that will specifically show up on your credit card, unlike evictions, defaults, bankruptcies and other events. However, if your accounts aren’t separated properly after divorce, your ex can still damage your credit, even if they don’t mean to do so.
When you begin the divorce process, get a copy of your credit report and go over it carefully. How many accounts are open under your name? Are they joint or separate? Identify all joint credit cards and debts, and make sure they’re addressed during the divorce process. You may remove your spouse from certain accounts and close others entirely—find out what your lawyer recommends.
After your divorce is final, check your credit report once more. Make sure you or your spouse have been removed from the appropriate accounts, and that all your personal information is correct. If you find mistakes, dispute them as quickly as possible, and if you’ve suffered any financial consequences—such as forgetting to pay a bill during the divorce process—you’re entitled to add a note explaining the reason for the delay.
For answers to your divorce questions, call the trusted divorce lawyers at Appelhof, Pfeifer & Hart, P.A. in St. Paul, MN today.
