Maintaining a good credit score is important for things like securing a mortgage, favorable interest rates and certain lines of credit. However, there are a number of things that can impact one’s score, such as missed payments. While divorce itself will not affect one’s credit score, decisions made during and after the process certainly can.
Effectively communicating throughout a divorce is not always easy, but it is often necessary for financial security. In Texas, a divorcing couple should be sure that each spouse understands which joint bills he or she is responsible for paying. Closing out joint bank accounts and establishing individual accounts is also a good idea that will protect one’s finances and make sure that there is always money to cover monthly payments for various debts.
Joint marital debt is divided during divorce, so it is not uncommon for just one spouse to be responsible for paying off something like a joint loan or credit card. Rather than keep that debt in both people’s names, it may be helpful to reach out to the creditor and ask that it be transferred to just one person’s name. This will prevent payments that are missed even years later from affecting both people’s credit scores.
Creating a solid foundation for one’s financial future is important at every step of life, and especially so during divorce. This is because even seemingly minor decisions can have long term implications that may affect that foundation, including damaging one’s credit score. Collecting important financial information, speaking with an experienced attorney and learning as much as possible about Texas family law may all prove helpful for those who are dealing with debt during divorce.