Please read on, then contact an experienced Ocean County divorce attorney to learn what effect a divorce will have on your credit in the state of NJ.
Can a divorce hurt my credit in NJ?
Because your credit report does not state whether you are married, single or divorced, divorce proceedings do not affect your credit report or credit score directly. Nevertheless, what may affect your credit history and score is an indirect effect due to the divorce process often involving dividing joint accounts. You must deal with that joint account prior to the divorce if you are listed as a joint owner, cosigner or authorized user. It is highly advisable that you close the account completely or otherwise ensure your name or that of your spouse is completely removed from the account. Regardless of what other agreements may say, you are both legally responsible for it as long as it remains open with both your names on it.
Can a divorce void a contract with a lender?
A divorce decree does not break a contract with a lender even if it specifies who is responsible for accounts opened during the marriage. The late payments will still appear on both credit reports and negatively impact both individuals’ credit scores if the spouse responsible under the divorce decree is unable or unwilling to pay and the contract remains unchanged by the lender. Even though doing so would also hurt their financial standing, a vindictive spouse may wish to wreck their soon-to-be-former husband or wife’s credit by running up large credit purchases on joint accounts and saddling the other person with huge debts, destroying their credit history in the process.
Ways to protect your credit during a divorce in NJ
To begin this new chapter of your life, you will need a strong credit history. To ensure that, you should undertake the following actions:
- If at all possible, maintain a civil relationship during the divorce process to avoid the perils of a vindictive split.
- Work together to pay off and close existing joint accounts.
- If paying off and closing an account is not possible, try to convert the account to an individual account.
- Contact each creditor and explore the options available with that lender.
You should strongly consider reaching out to a skilled Ocean County family law attorney today if you have any questions about this or any other divorce-related matter.
Contact our experienced Ocean County firm
Matters of divorce and family law require the attention and skill of an experienced attorney who will fight for your future. Not only is your financial well-being at stake, but in a divorce, both you and your children’s emotional well-being are at risk as well. If you need a divorce and family law attorney in Ocean County, New Jersey, please do not hesitate to contact the Law Office of Sarina Gianna, LLC today to schedule a consultation.