I've always heard that getting a divorce ruins your credit. Is this true? What if you pay everything on time through out your divorce? Would your credit still be hurt just because you are getting a divorce?
2007-03-12 11:18:07 · 8 answers · asked by Anonymous in Family & Relationships ➔ Marriage & Divorce
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Hey, listen. I know what I am talking about. I'm a divorce lawyer who got divorced last year. Many of the answers given were mostly right but all left out a portion of the answer in one way or another.
First, divorce by itself has no effect on your credit. There is no way for it to even be noted on your credit report.
Second, it's not just about a change in lifestyle; going from two incomes to one, although this is about half the equation.
Third - in a divorce the debts must be divided, right? This is the other half of the equation. There are mortgages, credit cards, car loans, student loans, etc. When a divorce is reached there is either a separation agreement or a court decides how to allocate debt. Various debts are assigned to each of the parties. Even though the court or parties allocate the debt, the creditors still have you both on the line. In my divorce, a separation agreement was reached. I got certain debts. I have made all payments for the debts I took on time. However, my ex has not. He kept the house so he has the mortgage and he has a a credit card debt with a $16,000 balance. These debts have both our names on them. He is trying to refinance the mortgage but has not yet been successful. He has been behind many, many times on both the mortgage payment and on the credit card payment.
Even though we are divorced and the papers reflect he is responsible, by contract, I am also obligated on the debt. Therefore, his late payments affect my credit rating.
2007-03-12 12:08:27 · answer #1 · answered by batscout 2 · 1⤊ 0⤋
No, if you pay everything on time, your credit will not get affected. When I got my divorce, nothing happened to my score, but my ex's one ran downhill because he couldn't keep up with his payments.
Most of the time the credit gets ruined because of the divorce because of thousands of dollars that have to be paid to the lawyers. People go into a lot of debt because of the lawyers' fees, court fees, spousal/child support payments, having to find a new place to live, relocation expenses, etc. And it all happens at the same time.
2007-03-12 11:40:59 · answer #2 · answered by OC 7 · 0⤊ 0⤋
No it would not. Getting a divorce has nothing to do with your credit. What normally happens is that couples are in debt up to their eyeballs and it requires both incomes to pay the bills. So when they get a divorce they do not have the disposable income to pay those bills anymore. Add to this the problems that arise splitting up property like vehicles, homes, boats and not to mention bank accounts and retirement accounts and the pressure gets to them and they file for bankruptcy.
2007-03-12 11:36:01 · answer #3 · answered by ? 7 · 1⤊ 0⤋
It shows a lack of responsibility to a degree. It doesn't matter at that point if you pay everything off in full on time. It's a character issue I think. The creditors look at it like if you can't keep a committed relationship together with someone you love how can you be expected to maintain a good financial relationship with your creditors and people loaning you money. I think that's it. It's still not fair but I've always thought that's why.
2007-03-12 11:21:45 · answer #4 · answered by Margaret M 2 · 0⤊ 4⤋
Usually the financial hardship causes people to be unable to pay things on time, or to incur tremendous debt due to legal expenses, moving expenses, etc.
2007-03-12 11:29:18 · answer #5 · answered by Anonymous · 0⤊ 0⤋
You heard wrong. Whoever told you that was either financially irresponsible or had a spouse who was, and thus messed up that person's credit. Don't worry about it. It's false.
Your credit score is based on the amount of credit you're using and the timliness of your payments.
2007-03-12 11:22:36 · answer #6 · answered by itry007 4 · 0⤊ 3⤋
I think people take on more debt (ie: they buy their spouses half of the house). Or maybe joint credit cards don't get paid, etc.
2007-03-12 11:22:55 · answer #7 · answered by Baby #1 born August 2009 6 · 0⤊ 1⤋
didn't hurt mine
2007-03-12 11:44:15 · answer #8 · answered by abc 7 · 0⤊ 1⤋