When you look at your credit report in Pennsylvania, you’ll see that your marital status is not listed, even if you’re going through a divorce or are already divorced. This means that the divorce itself doesn’t impact your credit score. However, indirect damage to your credit score could occur if you have joint debts with your spouse or missed payments show on your report.
Every divorce is different, and the financial implications of divorce vary from person to person. If you’re a Pennsylvania resident going through a divorce, it’s important to be familiar with family law so that you’ll know what to expect when it comes to your money.
Keep in mind that your joint accounts will still show up on your credit report even if the family law court has decided that your ex-spouse is responsible for paying the debt. The only way the debts will be exhausted is if they are paid off or if the loan is refinanced in your spouse’s name only. The debt won’t be removed from your report, but it will end collection activity, which can raise your score over time.
Credit card payments
If divorce has left you in a financial bind and you are unemployed or underemployed, you may have to rely on your credit cards to take care of financial matters. This often leads to a higher credit card balance, which can lower your overall credit score. Making late payments can damage your credit score even further. If you know divorce is inevitable, it’s important to start taking steps to manage your credit and prevent more financial strain.
If you and your ex-spouse have joint loans, you may want to leave the matter to a family law court to decide who is liable to pay. You can also arrange to dispose of these assets so that you won’t be financially obligated to maintain them.
If you have questions about how your credit score may change during and after your divorce, you may want to speak with a qualified family law attorney. An experienced legal professional can help you understand the financial impact of divorce.