Can Divorce Affect My Credit Score in Illinois?

 Posted on December 00,0000 in DuPage County divorce lawyer

Divorces are difficult for some families, especially when it concerns financial matters. Splitting your marital finances during your divorce can be challenging, but it can also be disastrous for a couple. With two separate households comes increased financial obligations. Some people may be prepared for the increase, while others may struggle. While divorce in itself will not lower your credit score directly, certain actions and events that take place during the divorce can affect the score in negative ways. The following are a few situations that could potentially impact your credit score when going through a divorce:

You Have to Refinance Your Home

One of the biggest assets you may have to deal with in your divorce is the family home. If one spouse is planning on keeping the marital home, it is best to make sure the home is in that person’s name only. To do this, you may have to refinance your mortgage. Refinancing means you will have to go through a comprehensive credit inquiry, which can affect your credit score.

Your Spouse Still Has Access to Your Accounts

When you are married, most of your financial accounts are probably joint accounts, meaning you and your spouse both have ownership over them. When you get divorced, the process of splitting those accounts and/or taking your spouse’s name off of them can take a while. If your spouse still has access to accounts such as your credit card account, he or she can rack up charges, which can affect your credit score in a negative way.

You Cannot Pay Your Bills

One of the things that many divorced people cite as something they were not prepared for was losing an entire income. The kind of lifestyle you had during the marriage is not always the lifestyle you can afford after you part ways. Before your divorce is finalized, you should be sure to come up with a new budget using your sole income and make sure you can afford everything you are responsible for paying. Even just one missed payment on a credit card can result in a stain on your credit score.

Contact an Aurora Divorce Attorney

Protecting your credit may not be high on your list of priorities during your divorce, but it is something you should keep in mind while you are making decisions about your future finances. A knowledgeable DuPage County divorce lawyer can not only provide guidance on certain financial matters but can also assist you with all other aspects of your divorce. At the Law Office of Matthew M. Williams, P.C., we can also help you deal with other divorce issues such as parenting time and decision-making responsibilities, spousal maintenance, child support, and property division. To schedule a consultation, call our office at 630-409-8184 today.

Sources:

https://www.nerdwallet.com/family-law-attorney/finance/credit-cards-divorce-hurt-score-joint-accounts-bills-pay/

https://blog.credit.com/2017/12/10-ways-divorce-can-affect-your-credit-180090/

https://www.thebalance.com/will-divorce-affect-your-credit-score-960993