If you are worried about the negative effects of a divorce, please read on, then contact an experienced Hackensack, New Jersey divorce attorney to learn if getting a divorce will hurt your credit score in the Garden State.
Will a divorce wreck my credit in New Jersey?
Divorce proceedings do not affect your credit report or credit score directly, because your credit report does not state whether you are married, single or divorced. However, you may see an indirect effect because the divorce process often involves dividing joint accounts, which may affect your credit history and scores. If you are listed as a joint owner, cosigner or authorized user, you must deal with that joint account prior to the divorce. That means closing the account completely or otherwise ensuring your name or your former spouse’s name is completely removed from the account. As long as it remains open with both your names on it, you are both legally responsible for it, regardless of what other agreements may say.
Does a divorce decree void a lender contract?
A divorce decree may specify who is responsible for accounts opened during the marriage, but it does not break contracts with lenders. If the spouse responsible under the divorce decree is unable or unwilling to pay and the contract remains unchanged by the lender, the late payments will still appear on both credit reports and negatively impact both individuals’ credit scores. Keep in mind that an angry spouse may wish to hurt their soon-to-be-former husband or wife by running up huge credit purchases on joint accounts in order to saddle the other person with large debts or destroy their credit history.
How do you protect your credit during a New Jersey divorce?
Having a strong credit history is important to beginning this new chapter of your life. The following are some ways to protect your credit during a divorce:
- If at all possible, maintain a civil relationship during the divorce process to avoid the perils of a vindictive split.
- Work together to pay off and close existing joint accounts.
- If paying off and closing an account is not possible, try to convert the account to an individual account.
- Contact each creditor and explore the options available with that lender.
If you have any questions about this or any other divorce-related matter, you should strongly consider reaching out to a skilled New Jersey divorce lawyer today.
Contact Our Experienced Bergen County Firm
Whether you are getting divorced or are facing any other family law matter, you need competent legal assistance on your side. Our legal team is dedicated to fighting for individuals, their families, and their future. Contact HD Family Law today to schedule your initial consultation with our compassionate and experienced firm.