Unfortunately, when pursuing a divorce, many people are unaware of the financial impacts this process can have, as they are focused on the emotional toll it can take. It’s important to understand that not only can this impact your finances for years after the divorce because of how property is divided, but a divorce can also impact your credit score. If you are filing for divorce, understanding how this process can impact your credit and why working with a Nassau County property distribution lawyer can help you explore the best ways to shield your credit during your divorce.
If I File for Divorce, Will It Affect My Credit Score?
First and foremost, it’s imperative to understand that filing for a divorce will not inherently impact your credit score. However, the outcome of your divorce can.
When you and your spouse file for a divorce in New York, your marital property, which is any assets you obtained throughout the course of the marriage, will be divided based on the state’s equitable distribution process. This means that these assets, such as real estate, income, and retirement accounts, will be divided based on each spouse’s contribution to the marriage rather than evenly. However, what many fail to realize is that their debts will also be divided during this process.
Your debts will be divided based on the same considerations as your assets. This means you and your spouse may be responsible for debts accumulated in the marriage. Unfortunately, if you co-signed a debt and responsibility for payment is assigned to your spouse, but they fail to make the payment on time, it can impact your credit score.
What Can I Do to Protect My Credit?
If you are going through a divorce, there are steps you can take to help shield your credit score. Generally, one of the first and most important things you can do is separate any joint accounts you have with your spouse, including credit cards. If you are an authorized user on any cards owned by your spouse, you should remove yourself, and if they are on your accounts, have them removed. You should pay off joint credit cards if possible and close the accounts to prevent them from accumulating debt.
You should also make it a priority to regularly check your credit reports. Consumers are eligible for three free credit reports annually, which allows you to check your credit every four months. This can help alert you to any potential issues you may face with your credit.
Generally, one of the best things you can do to protect your credit is to work with an experienced divorce attorney from Barrows Levy PLLC. Our team understands how complicated these issues can be, which is why our dedicated team will do everything possible to aid you in these matters. When you are going through this difficult time, our team is ready to help. Contact us today to learn how we can fight for you.
