Why does divorce effect people's credit?

Answer 1

Some don't pay the debts. Some misunderstand that when a divorce assigns the debts to one of the couple it isn't binding on the other so if your ex doesn't pay and you don't pay you both get bad credit. Some ex's are spiteful so will not pay the debt to hurt you and you might think it isn't your debt. Your name may still be on credit cards they are using and they might run them up and quit paying or even file bankruptcy leaving you with all the debt not just what you at the date you divorced.
Some don't refinance the house into the name of the person keeping it so if they miss a payment you are hurt. Even if they pay you can't get a mortgage because you owe the old mortgage.

Answer 2

You cant just walk away. In Ohio, the lender can (and should!) come after you for the full amount they lost. In addition, depending on the type of loan, the IRS may be about to tax you as income on the banks lose, especially since you refinanced. This loan is NOT a purchase loan, which has special protections in some cases. You need to talk with a lawyer and STOP listening to people that have no idea what they are talking about. You can't just walk away.

Answer 3

No, but it sometimes affects it.

Merely getting a divorce doesn't affect your credit score in and of itself. However it's not ususual for one or both parties to wind up with significantly less wealth following a divorce and/or a disproportionate share of the outstanding debts from the marital estate. That can lead to financial difficulties that will result in a reduced credit score for either or even both parties.

Answer 4

Because sometimes one spouse runs up a bill without telling the other. The spouse who didnt do this does not really want to pay for something that he did not get the benefit off...which might also be the reason why they divorced in the first place

Answer 5

In some instances you are just as liable for the debts that your spouse accumulated during the marriage. If they are not paid according to the agreement then it will be reported negatively on both individual's credit.

Answer 6

When you get married, the cliche is "two can live cheaper than one" and people spend all their income.

When they get divorced, it's the reverse and now they have two households living on the same income as before. (One household usually living way below the previous standard of living.) Something's got to give....

Answer 7

It's one of the five C's:
character, capacity, something something something.

these measure how good your credit is, because character means you're determined to stick something out and be a good credit investment.

Answer 8

Biggest thing is joint accounts. Both parties are responsible for them, even the one that is not the one that rung up the debts. The divorce decree does not change that and cannot change that because it does not affect the agreement between creditor and debtors.

Answer 9

exes

Answer 10

higher expences..........