Divorce is inarguably one of the most difficult experiences financially. Not only do both spouses often keep their assets separate after the divorce, but they may experience financial hardship since they have to readjust to having separate incomes. Credit scores may also be affected, especially if either spouse does not work full time, and the divorce has been finalized. Even though you may face some financial hardship once the divorce has been finalized, it is very important to understand how divorce may lower your credit, and how to bring your credit score back up after the divorce.
Does Divorce Affect Credit Directly?
Many couples will face financial hardship after a divorce is filed, and their credit will be greatly affected. However, the divorce itself will not affect credit because the divorce is not included on the credit report or factored into the credit score. A divorce may indirectly lead to financial hardship that may adversely affect the credit score, as losing one of two household incomes may lead to missed payments. When a person misses a monthly payment, his or her credit score is negatively impacted..
How to Boost Credit After a Divorce
When a divorce has been filed, it is very important to find a way to adjust to a reduced income. Selling the home and buying a less expensive one or even renting may be the best option, but it depends on the individual’s situation. Creating a budget and prioritizing expenses is important as well because keeping up with the payments is a good way to build credit. It is also a good idea to cut financial ties with the ex-spouse as quickly as possible to avoid running up a balance. It is also a good idea to close all accounts with both spouses’ names for extra protection.
Call a San Jose Divorce Lawyer Today
Divorce is one of the most difficult times financially and emotionally, and the individual’s credit score may be adversely affected once the divorce is finalized. If you are experiencing financial hardship during the divorce process, you can count on Dominion Law Group, LLP for effective legal representation. For almost three decades, our seasoned Santa Clara County lawyers have assisted clients in family law and divorce matters, and they are ready to assist you with your case. For a free initial consultation, give us a call at 408-288-5592 for quality legal service and representation.