Despite common belief, getting a divorce does not directly impact your credit score.
However, many people do suffer from bad credit after divorce, especially when drastic income shifts lead to missed payments.
Sever financial ties to your ex
The sooner you can settle your joint debts, the sooner you can move on from your marriage and return to financial independence. To make the transition easier, close all jointly-held accounts and remove your authorization for your former spouse to use your credit cards. To protect your own credit, make at least the minimum payments on time, and request repayment from your ex via the family court process.
Adjust your lifestyle
If you and your spouse both worked to support your lifestyle, splitting up may mean downsizing and making other major changes to your lifestyle. You may need to move into a less-expensive home, trade your car in for a cheaper model or give up your entertainment subscriptions for a while until your bank account recovers.
Rely on your own income
While a judge may order your former spouse to provide alimony or child support, you should not count on that money to pay your bills each month. Your ex’s circumstances may change. Payments may be late, non-existent or lowered by the court, forcing you into a difficult financial situation. If you can cover your primary expenses from your own checking account, then you can work to keep your credit score intact.
Divorce can wreak havoc on your life, but if you remain careful and diligent, it does not have to ruin your financial future.
