Could marital split affect credit ratings?

Parting ways for married couples is a painful experience. There could be a lot of emotional, financial and social challenges including the custody of a child if there is any. As a result, most people unintentionally overlook their credit matters. This could be a big mistake and lead to financial troubles – especially when there is an ‘unhappy ex’ in the frame. Even the most known sane persons have reacted in unexpected ways while grieving the end of a marriage and not all can handle divorce gracefully.

Does divorce affect credit scores?

Not directly. An individual’s creditworthiness isn’t determined by his marital status. Moreover, marital status is not even mentioned in the credit reports. But many factors could adversely affect his scores while undergoing or post-divorce. Hence, it is important to track your credit rating until things are finally sorted out.

The idea of an ex-partner may sound a little off-beat, but it is always better to be safe than sorry. So, let’s know more about some common factors that could hamper an individual’s scores.

If joint bills were missed: Divorce could hurt an individual’s credit score if payments are made through joint accounts. In certain cases, presiding judges have held a single spouse responsible to deal with the joint debt. This could be a lot of financial burden for that person. If he or she fails to make the payment on time, it would result in a credit rating dip for something like 7 to 10 years.

An unhappy ex-spouse: If the spouse is aware of the partner’s passwords, he or she can spend it without worrying about the consequences and cause damage to the credit score. Hence, it is important to take steps to ensure that the spouse cannot access the financial information. Change PINs, Password, on all account and websites. One can also update the beneficiary information on all accounts and women can go back to their maiden name to avoid further problems.

If difficulty in paying bills:  Legal matters could take a long time to settle. This could require the individual to spend a significant unexpected amount to the lawyer upsetting the regular budget for months. Also, if the borrower had not been an earning member and was dependent on the spouse, the split in marital status could leave him or her wondering from where to source the amount.

The way out 

1. Ensure all joint bills are paid on time

2. Convert joint accounts into individual accounts

3. Place a freeze on credit reports

4. Secure all passwords

5. Get adjusted to reduced income

6. Avoid or at least minimise the wrath of a vindictive ex-spouse

7. Women could use maiden names before getting fresh credit  

An individual is entitled to a free credit rating report every 12 months. Long on to https://civilscores.com/credit-rating for more details to protect your scores while undergoing a marital split.