One of the questions that people often ask of our Bronx divorce attorneys is whether or not divorce affects their credit score. The King Law Firm can offer some insight into this matter. If you find yourself wondering about protecting your credit score and what you should expecting moving forward, do not hesitate to reach out to us to discuss the matter in detail.
How You Can Protect Your Finances
First, you should know that divorce is not the direct cause of a dip in your credit score. Nothing about your current marital status has any connection with your credit score. What does affect your credit, however, are the various financial and tax issues that you have to deal with along the way.
For example, have you signed any loans, joint accounts, or mortgages with your spouse? While you are married, all of those finances are tied to both you and your spouse directly. So, if you default on the loan at any point in time, you and your spouse will be affected and be penalized.
That is why it is important that you work out any issues before you divorce. When it comes time to pay these back, you do not want to have any confusions about who is responsible for what. One way you can do this is by removing your names from any joint accounts. Alternatively, work out a plan for one or the other spouse to take full financial responsibility.
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Divorces can be expensive—one of the most expensive ordeals you may ever have to face. If your case leaves you with very few finances to work with, this can also affect your credit as you may begin having difficulty paying your own bills, which can also affect your credit score. Always be sure to evaluate your finances from time to time and if you need to, create a budget and stick with it so that you know where every penny is going.
You may already be aware how important your credit score is. We use it to apply for a car loan, an apartment or a home and make other major purchases. In the eyes of lending companies, a good credit score is an equivalent of having a good reputation. You can safeguard your finances now once you have the necessary tools and education. Our Bronx divorce attorneys can help you!
If you are in the midst of or are considering filing for divorce, please contact The King Law Firm today. We offer free case consultations so that we can discuss all of your concerns in-depth.