How Getting a Divorce May Hurt Your Credit

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Did you ever think that your divorce can destroy your credit rating? If not, think now.

Yes, it happens. Sometimes, during the course of the divorce, the court orders one partner to keep paying the creditors’ until the divorce is final. Suppose you are not in talking terms with your partners, then how would you know if your partner is paying up or not?

Well, in this situation, Oakville family lawyer are a boon! Most of the couples who are getting divorced have joint debts and this results in their credit ratings being linked. Even after the divorce, if your credit ratings are bad, it’s hard to move on with life. The divorce can also lead to other irresponsible financial behaviors in both parties. You should start becoming aware of how your divorce can affect your credit rating and the effects of a bad credit rating.

Will my Divorce hurt my credit?

Do you still believe that once your divorce is final, you and your partner won’t have to joint financial responsibilities? Well, it’s wrong. Just because your divorce is final, it doesn’t mean that both you and your partner will act responsibly. That is where Oakville family lawyer come into the picture.

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Court orders aren’t a sure-fire way of protecting your and your partner’s credit ratings. Once you have signed any legal agreement with your partner, you both have a responsibility to pay your creditor. Courts usually don’t change these agreements unless there has been an unlawful factor in the agreement. Even changing thee contracts require the agreement of all the parties, you, your partner and the creditor.

Your credit scores are drastically affected if your ex-spouse does not pay the creditors. The only way to get off the binding agreement is to refinance it or pay it off fully.

Your Divorce Decree is Ignored by the creditors

The disadvantages of having a bad credit score are limitless—you have to pay more to borrow money for mortgage or an auto-loan. The Oakville family lawyer know that the creditors are least bothered about your divorce and that it doesn’t affect the way creditors work.

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Steps to protect your credit score

  •   Be aware of any and all the joint accounts you and your partner have. The ones you have to pay back are the most important.
  •   Get your credit reports from some of the major bureaus which give your credit report.
  •   Oakville family lawyer suggest that you should close off any and all joint accounts you and your partner have together. If there is an account for which you have to make payments, divide the debt equally and close that account.
  •   Suppose you don’t have any credit, get a credit card right away and build some credit history.
  •   If you have a joint mortgage to pay off, decide whether you want to sell the house and pay-off the mortgage.
  •   Make sure that you and your partner do not have any financial obligations together.

Talk to Oakville family lawyer to find out if your divorce will be shown in your credit report.