Many things can have impacts on what financial opportunities and options a person has. This includes what is on their credit report. So, among the financial concerns a person may have when getting divorced is whether the split will have impacts on this report.
Now, marital status is not among the information that credit reports track. So, a divorce doesn’t “go on” this report or have any direct automatic impacts on it. However, this does not mean that a divorce is irrelevant from a credit report perspective. It can have some significant indirect impacts.
For one, the splitting of one financial household into two that comes with a divorce can involve a flurry of paperwork, details and changes. Sometimes, in the midst of all this, mistakes end up being made on a credit report. Catching such errors early is important, as it can reduce the amount of time in which they can cause negative impacts. So, both before and after a divorce, it can be important for divorcing individuals to check their credit report to make sure everything on it is accurate.
Also, a divorce can bring about some big shocks to a person’s finances. How a person responds to these challenges can have major implications for their credit report.
What can help individuals with getting themselves in a strong position to protect their good credit and financial stability in the midst of the financial impacts of a divorce?
One is having a clear plan for one’s post-divorce financial life, including setting out a budget that properly takes into account their new circumstances.
Another is getting a fair settlement in their divorce which is consistent with their goals and best interests. Skilled divorce attorneys can help individuals pursue fair and workable resolutions to property division issues and other divorce financial matters.