How Divorce Affects Credit
Divorce itself doesn't appear on your credit report, but related factors can affect your score:
- Joint debts that go unpaid or are late
- Closing long-standing joint accounts
- Taking on new debt in your name only
- Changes to debt-to-income ratio
- Spouse's failure to pay assigned debts
Important: A divorce order assigns responsibility between spouses but doesn't change your obligation to creditors.
Protection Strategies
- Monitor your credit: Get free reports from Equifax and TransUnion
- Close joint accounts: Or freeze them to prevent new charges
- Remove authorized users: From your personal cards
- Keep paying bills: Even if assigned to spouse in agreement
- Document everything: Keep records of all payments
- Consider a credit freeze: If fraud is a concern
- Open individual accounts: Establish credit in your name
Handling Joint Debt
| Debt Type | Options |
|---|---|
| Joint Credit Cards | Close account, pay off, or transfer to one name |
| Mortgage | Sell property, refinance in one name, or one buys out other |
| Car Loan | Refinance in owner's name or sell vehicle |
| Line of Credit | Close, pay off, or convert to individual |
Rebuilding Credit
- Pay all bills on time (most important factor)
- Keep credit utilization below 30%
- Maintain older accounts if possible
- Consider a secured credit card
- Become an authorized user on trusted person's account
- Don't apply for too much new credit at once
- Review credit reports for errors and dispute them
Frequently Asked Questions
Divorce itself doesn't appear on your credit report. However, joint debts that go unpaid, closing accounts, or taking on new debt can affect your score. Your ex's failure to pay joint debts will impact your credit even if the divorce order assigns them responsibility.
If you're a co-signer or joint account holder, creditors can still pursue you regardless of what your divorce agreement says. The divorce order binds your ex-spouse but not the creditors. To truly separate debt, accounts must be closed or refinanced in one name only.
Steps to protect credit: monitor your credit report, close or freeze joint accounts, remove authorized users from your cards, separate joint debts where possible, keep paying all bills on time, document everything, and consider a credit freeze if fraud is a concern.