Divorce is a major life change that impacts more than just your relationship status — it can also take a serious toll on your finances, including your credit score. Amid all the emotional and logistical adjustments, protecting your credit might not be top of mind, but it's a critical step in safeguarding your financial future.
Here’s how divorce can affect your credit — and what you can do to stay on solid financial ground.
How Divorce Can Impact Your Credit
Even though your credit report is individual, the financial entanglements of a marriage — shared debt, joint accounts, income shifts — can have ripple effects long after the paperwork is finalized.
1. Changes in Income
Splitting into two households often means going from dual income to single. Add in potential child support or alimony payments, and your budget may need a serious overhaul. Without a clear plan, it’s easy to fall behind on bills, which can damage your credit.
2. Joint Debts
Joint credit cards, car loans, or mortgages appear on both parties’ credit reports. If one person misses a payment — even accidentally — it can hurt both credit scores. And post-divorce, you might not even realize that an unpaid bill is dragging down your score.
3. Closing Joint Accounts
It might seem smart to close joint accounts quickly, but doing so can raise your credit utilization ratio if you’re carrying balances on other cards. Credit experts recommend keeping your utilization under 30% for optimal credit health.
Creditors Don’t Follow Divorce Decrees
Even if the divorce decree assigns a debt to your ex, lenders still see both names on the account unless it’s formally refinanced or closed. That means you’re still on the hook — legally and financially — if payments are missed.
Steps You Can Take to Protect Your Credit During Divorce
You don’t have to be caught off guard. These practical steps can help you protect your credit through the divorce process and beyond:
- Close or Separate Joint Accounts
As soon as possible, work to close or separate joint accounts. If that's not feasible right away, monitor them closely and be proactive in ensuring payments are made.
- Notify Lenders and Creditors
Send a certified letter to your lenders notifying them of your divorce and clarifying that you will not be responsible for future debt on joint accounts. Request that accounts be marked inactive to prevent further use.
- Monitor Monthly Statements
Request monthly statements for any remaining joint accounts so you can track what’s happening and catch any issues early.
- Think Twice About Keeping the House
While staying in the family home might feel like stability, it's often not financially sustainable on one income. Be realistic about whether it makes sense long-term, or whether selling and starting fresh might be the better move.
- Check Your Credit Regularly
Keep a close eye on your credit reports. It’s the best way to catch unexpected changes, errors, or unauthorized activity. You’re entitled to one free report per year from each bureau at annualcreditreport.com.
- Consider Freezing Your Credit
If you’re concerned your ex may access or misuse your credit, consider placing a credit freeze or fraud alert with the credit bureaus. This helps prevent unauthorized new accounts from being opened in your name.
- Take Legal Action if Necessary
If your ex stops paying a debt they were court-ordered to handle, your credit might still take the hit. In some cases, it’s worth paying the debt yourself to protect your score, then pursuing reimbursement through civil court.
Moving Forward
Divorce is never easy, but protecting your credit is one way to take back control of your financial future. With a few smart steps and a little diligence, you can emerge from this chapter with your credit — and your confidence — intact.
Need Help Moving Forward?
If you're going through a divorce and aren’t sure where to start, I’m here to help. Whether you need guidance on your next housing move or a referral to a trusted divorce attorney, financial advisor, or mediator, I can connect you with the right professionals.
Reach out anytime — you're not alone in this.
Megan Sullivan, [email protected]
