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How divorce influences credit

On Behalf of | Jul 6, 2016 | Divorce |

If there is one thing more stressful than divorce, it must be credit and debt. In many divorce cases, as some Connecticut residents are already aware, the two can overlap during the separation process. It is, therefore, important for both parties to have a full understanding of their rights and responsibilities under state law as they pertain to outstanding debt in a divorce situation. 

Thankfully, the act of divorce itself does not directly influence credit ratings. However, the existence of outstanding debt can. During a divorce, the couple agrees to split assets and debts alike, according to the laws of their state. This means the court could rule that one or the other spouse is responsible for a given debt. 

Credit companies are not so discerning. If both party’s names are attached to a given debt, and the spouse who was court-ordered to pay it down fails to do so, the credit company could come after both parties — even if the court has already ordered one spouse to take responsibility. This is why it is a good idea for both parties to keep copies of the original loan documents as well as the court order, in order to handle these issues should they arise.

Divorce can be complicated, as many Connecticut residents already know. However, it is important to remember that the support of a professional divorce attorney can go a long way toward smoothing an otherwise-bumpy road. In seeking the support of an attorney, both members of a divorcing couple can rest easier knowing their divorce is being handled in a professional way, moving both towards an equitable agreement and a happier tomorrow. 

Source: Yahoo Finance, “Does Getting a Divorce Hurt Your Credit?”, Brooke Niemeyer, July 2, 2016