Dealing with the emotions of a marital split-up can understandably be challenging, but so can dealing with the financial aspect of it. The divorce process can have an impact not only on a Texas resident’s net worth but also on his or her credit score. Here are a few ways the dissolution of a marriage can affect one’s credit score.
If two spouses decided to get divorced and separate their accounts, the lower-earning spouse may end up with lower credit limits on his or her cards. This is because credit card companies have the right to decrease these limits if they discover that salary changes have occurred in the card owners. Unfortunately, this can not only impact the spouse’s credit score but also cause him or her to max out his or her credit limit quickly.
In addition, if a divorce becomes ugly, one spouse may be tempted to financially harm the other spouse out of spite. This can naturally impact the other party’s credit score. In the same way, if spouses fail to work well together — for instance, one of them overlooks joint bills that he or she agreed to pay — this can cause both parties’ credit scores to lose good standing.
If possible, two divorcing spouses may want to explore an alternative to traditional divorce litigation, such as divorce mediation or informal negotiations. This tends to be a lot less acrimonious than going to trial and thus often leads to a faster, less-expensive and more mutually satisfactory outcome. A divorce attorney can help to ensure that one’s best interests and rights are protected during these types of processes in Texas.
Source: credit.com, “10 Ways Divorce can Affect your Credit“, Josh Smith, Dec. 15, 2017