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How divorce can impact credit

On Behalf of | Jan 2, 2018 | Divorce

Even though a divorce might be a good option for some couples in North Carolina, there are some lingering effects it can have on each spouse’s credit. The act of filing doesn’t typically make a difference. After a few months, however, there will likely be noticeable changes for both parties involved.

Dealing with real estate can be tricky for soon-to-be exes. For example, property that is changed to only one person’s name can be expensive. The solution for many is home refinancing.

In addition, the debt involved in the marriage might not be divided as equally as it should. A way to solve this issue is to perform a credit check of each party before the divorce is complete. After new budgets are made, one person might not have as much income as the other. Eventually, this ex could fail to make payments on time.

When one party doesn’t make payments, it can impact the credit scores of both people on the account. A joint bank account can negatively impact both people if one person decides to take money out without the other knowing. This could leave a lack of funds to make payments toward debts. Once the divorce is filed, creditors will be able to see that there is a decrease in the monthly income. This can make it harder to secure loans that are needed.

A family law attorney can work with a couple to divide their debts and assets as equally as possible. The lawyer could also make sure that each party understands the aspects of the divorce so that there is no confusion when the process is complete.

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