Divorce proceedings don't affect your credit report or credit scores directly. Rather, you may see an indirect effect because the divorce process often involves splitting up joint accounts, which can very much affect your credit history and credit scores.
During and after a divorce, your credit may be affected because your household income is affected, your normal bill-paying is disrupted, and your finances and debt may be unclear. Take proactive steps early on to keep your credit on track—and set a course for financial independence moving forward.
After divorce the couple often experience effects including, decreased levels of happiness, change in economic status, and emotional problems. The effects on children include academic, behavioral, and psychological problems.
"If they're an authorized user on your credit card, call the credit card company and remove them as soon as possible," she advises. "Also, have your credit card number changed and a new card to you issued right away." The opposite is true, as well, when it comes to guarding your credit health.
The answer to your question is “Yes”. You may sue your ex-husband for acts and omissions during the marriage and PERHAPS even after the marriage (or date of legal separation) which led to credit damage of your personal name.
Pay Off Debt before Finalizing Your Divorce
They just want to be paid. If your name is on the account, you are on the hook regardless of what your divorce decree says. The best solution to avoid issues with dividing debt during a divorce is to dissolve joint accounts before going to court.
Possessions, money, financial assets, and debt acquired during (and sometimes before) marriage are divided between former spouses. In fact, divorcing individuals need a more than 30% increase in income, on average, to maintain the same standard of living they had prior to their divorce.
While there's no argument that everyone endures the pain of divorce in one way or another, many people may be surprised to hear that, according to research, men have a much more difficult time with a split than women.
Marrying a person with a bad credit history won't affect your own credit record. You and your spouse will continue to have separate credit reports after you marry. However, any debts that you take on jointly will be reported on both your and your spouse's credit reports.
In order to remove your association with the account, you must go directly to the lender, and the lender must agree to change the contract. If you are an authorized user on the account, you can contact the creditor and request that you no longer be an authorized user.
The bottom line. You are generally not responsible for your spouse's credit card debt unless you are a co-signor for the card or it is a joint account. However, state laws vary and divorce or the death of your spouse could also impact your liability for this debt.
But while divorce ends your legal marriage, it doesn't terminate your or your ex's obligation to pay your fair share of federal income tax. If your divorce is final by Dec. 31 of the tax-filing year, the IRS will consider you unmarried for the entire year and you won't be able to file a joint return.
Removing a Joint Account Holder
Generally, either party can unilaterally close the account by contacting the card issuer over the phone or in writing. Once closed, the cards of both joint account holders and any authorized cardholders will be deactivated, and any future attempt to make purchases will be declined.
Getting married does not affect your credit score, and you and your spouse will continue to maintain separate credit histories and credit reports.
Because of these dynamics and the way that divorce laws work, women tend to suffer more financially than men after a divorce. The consequences of divorce for women are often quite severe. About 20% of women fall into poverty after a divorce, while approximately 25% temporarily lose their health insurance.
Ultimately, deciding if divorce is worth it comes down to your reasons, purpose and goals for divorcing. What are you trying to accomplish or change? Most people would say some version of to be happy or escape the pain of their marriage. That's not an unreasonable expectation, but it's often an unrealistic one.
Develop a budget based on needs– not wants – and keep in mind that your expenses need to stay within your post-divorce income. Consider all sources of income – including spousal and child support, keeping in mind that they won't last forever – as well as investment income.
A 2002 study found that two-thirds of unhappy adults who stayed together were happy five years later. They also found that those who divorced were no happier, on average, than those who stayed together. In other words, most people who are unhappily married—or cohabiting—end up happy if they stick at it.
Another study, The Effects of Divorce on America, found staggering correlations between divorce and ongoing problems for children. Divorce was linked to higher drug abuse, lower grades, more mental health issues, and higher suicide rates.
While some divorces are necessary, many marriages can be repaired. It may be difficult to face the issues that you and your spouse are struggling with, but research suggests that couples who can manage to stay together usually end up happier down the road than couples who divorce.
What is a non-working spouse entitled to in a divorce? A non-working spouse is entitled to receive alimony payments from their ex-spouse and can acquire up to 50 percent of property. However, this depends largely on whether they are voluntarily or involuntarily unemployed.
A judge may order your ex to pay you money or give you property. If your ex does not follow the court order, you have options.