How can a divorce affect my credit score?

The financial worries that often accompany a divorce for New Jersey residents may be many and are not limited to the details of a property division settlement. You may be trying to figure out a new and workable monthly budget for yourself based upon a reduced income and even somewhat greater level of expenses. Perhaps it was financial troubles that contributed to the breakdown of your marriage. A divorce can get you out of the marriage but does not always wipe away the debts that precluded the divorce.

Forbes recommends that you monitor your credit scores carefully before, during and after your divorce. Your own actions and the actions of your former or to-be former spouse can have an impact on the health of your credit. For example, let’s say that according to your divorce decree, your spouse is responsible for paying the balance on a particular joint credit card. If that debt is not paid or if any payments are made late, it is your credit report as well as your former spouse’s credit report that takes a hit. The ante for this can go up if the debt is a mortgage that is allowed to go to foreclosure.

You could even have problems with a former spouse using your Social Security number to acquire new credit. Even though this person was once your spouse, it is still identity theft and can leave you on the hook for the debt—and any reports of past due or unpaid amounts.

This information is not intended to provide legal advice but general information about how a divorce can have negative implications for credit scores for New Jersey residents.