Impact Of A Divorce On A Credit Score
Because your individual credit score does not include information on if you are single, married, widowed, or divorced, changing your status doesn’t change your score. That said, many marriages involve joint financial accounts. It is essential these assets and debts are distributed fairly so that there will not be future negative impacts to one or both individuals.
Dealing with all accounts that you are on, including joint accounts and accounts where you are listed as an authorized user, is an important part of the divorce process. What you decide to do with these accounts will depend on your unique situation. Some couples choose to completely close the accounts and start fresh with their own individual accounts. Others choose to have their spouse’s name removed. To understand what is best for your situation, talk through your concerns with an Orlando divorce lawyer.
Identifying Accounts and Making a Plan
Often it is helpful to begin the process of detangling financial accounts by making a list of all the accounts you and your spouse have, both jointly and individually. This is also part of the process of asset and debt disbursement. Then, note if each account is in one person’s name, the names of both parties, or if an account is in one individual’s name but the other has access as an authorized user. Checking with financial institutions is part of this process as many forget which accounts have their spouse listed as an authorized user. Next, you can decide what actions need to be taken, which could include one or more of the following:
- Close credit lines and joint accounts.
- Joint accounts, such as mortgages, can be retooled if needed.
- Credit reports can be monitored and credit lines frozen.
- Authorized user access on credit cards and bank accounts removed.
While the process can feel overwhelming at first, once you make a list of what needs to be done, the tasks are more manageable and can be addressed.
A Florida Attorney Can Help
Credit ratings are one of many concerns that individuals pursuing a Florida divorce may have, and there are professionals who can answer questions and help to shield your financial reputation today and into the future. Debts will need to be divided once the marital financial landscape is analyzed. Missed payments need to be avoided to keep a credit score healthy, so it is essential that it is understood who is responsible for which debts. To get the legal support you need, reach out to an Orlando divorce lawyer.
Are there financial questions, such as what will happen to your credit score when you divorce, that you would like answered? Bring all of your inquiries to the seasoned family law attorneys at Donna Hung Law. Once our attorneys are familiar with the details of your situation, they will share next steps with you and strategize a path forward. Then, you can be sure your credit score will not be negatively impacted by your divorce. To get started, call 407-999-0099 or contact us online to schedule an initial evaluation.