On behalf of Stange Law Firm, PC posted in Property Division on Thursday, April 14, 2016.
Every adult needs to take care of their credit rating, if they plan on buying a house or obtaining a credit card. Many times, employers do a credit check when evaluating job seekers.
Besides whether you pay your bills on time, one thing that can affect your credit rating is getting divorced. While divorce can be expensive, it can also lower — or raise — your rating in several ways.
Here are four ways divorce can change your credit rating, as explained by U.S. News and World Report:
- Formerly joint accounts often become solo accounts, but not always. And if your ex promised to pay a particular joint account, but then falls behind, lenders will consider you to be equally responsible.
- You and your ex cannot agree whether to sell the house or other major joint assets. If the mortgage stays in both of your names, your credit rating will be vulnerable to your ex’s ability to keep making payments on time, at least until he or she refinances.
- Going through divorce can put a temporary strain on your finances. Some people are tempted to skip a payment, though they would be wiser to contact the lender to work out a payment plan or other arrangement.
- On the other hand, divorce can be an opportunity to rebuild your credit rating, if financial problems during your marriage dragged it down. You can take control of your spending, open new accounts in your name and pay your bills on time.
There is more to marriage and divorce than money, but financial strains are a common reason people in Illinois get divorced. Having the right divorce attorney is an important way to set yourself up for financial success post-divorce.