Your Credit After Divorce
Going through the process of dissolving your marriage is difficult, whether you’ve been married one decade or one year. One of the biggest reasons divorce is so difficult is because of financial issues. Child support, alimony, and debt division can put a strain on even the most agreeable couples. Here’s what you should know about debt division in a divorce and how this could potentially impact your credit score going forward.
Equitable Distribution of Debts
New York follows equitable distribution laws and this applies to debts too. A divorce court will divide the debt between the two spouses as fairly as possible, with consideration to who accrued the debtor primarily benefitted from what the debt was incurred to purchase. This means you could be ordered to pay all of the debt in the name of both you and your spouse, or vice versa.
Missed or Late Payments & Your Credit
Regardless of who the court orders to pay a debt, the only thing that credit bureaus consider when assessing scores is whether the payments are on time or not. If your payments are missed or late, your credit report will reflect this information even if the court ordered your spouse to pay the debt.
If possible, an amicable divorce can help prevent retaliation against you by your spouse who may seek to use the fact that not paying their court-ordered debts could negatively affect you. Ideally, you will be able to maintain cordial contact with your spouse during and after the divorce so you can reach mutual agreements on matters such as this.
However, if your spouse isn’t on board, you may want to stay on top of whether or not court-ordered payments have been made if they are in your name at all. Even if they’re also in your spouse’s name, missed or late payments will be reported to both account holders’ credit, not just the primary account holder.
Contact a Brooklyn Family & Divorce Lawyer for Help Today
Divorce Lawyer Mary Katherine Brown is a veteran New York divorce attorney with a long and successful track record of getting excellent results for her clients. Whether you are dealing with a divorce that includes the distribution of debt or another family legal matter, you deserve adequate legal advocacy. Contact our office today to learn more or to schedule your consultation by calling (718) 878-6886.Posted in : Divorce ,