How Does Divorce Affect Your Credit Rating?

Divorce in Texas affects a lot of things including credit rating which in turn might cause financial implications to the spouses in the long run. One overlooked area that divorce affects your life is your credit score.

A contested divorce can have a major impact, but even an uncontested divorce can still impact your credit if you have any joint accounts.

Experian states that divorce does not directly affect your credit ratings, but it can have an impact. Often financial issues embroiled in the divorce process can have an impact long after you sign the final papers.

Many married couples have at least one joint account during their marriage whether a mortgage, bank account or credit card.

During the divorce process, some of those accounts become delinquent whether due to stress or out of spite from your spouse. After the divorce concludes, your angry spouse can skip payments on the car that is in both of your names.

Even though your spouse got the car and its payments in the divorce, your name is still on it. Those late payments can negatively impact your score.

If you close a joint credit card that has been opened for years, your credit rating may drop when the account closes. That fifteen-year-old card helps boost your credit history, but it cannot help you if the account closes. Opening new accounts may help separate your assets but can lower your credit score.

Ideally, if you can work together during the divorce, the divorce itself can have less of an impact on your credit. This information is meant to be educational and not to be taken as legal advice.