When people decide to start their own family, especially if they are young, most tend to think that they are tying the knot with the tongue not to be undone with the teeth. Standing at the altar exchanging wedding vows very few couples think about marital agreement. Husband-and-wife-to-be hope their marriage will last till death do them apart.

And of course, an overwhelming majority of the just-marrieds do not even think about how divorce can affect their credits. However, if we take a closer look at the financial problems caused by divorce, credit score drop will definitely be in the top 5.

So, how come former spouses can face bad credit just for the reason they have split?

Joint credit card accounts and loans are the stumbling block. When you file for divorce, no matter what decision concerning your finances the court announces, it will make no difference to your credit issuers. They will keep charging you the same fees and rates.

There can be two possible scenarios after divorce. And it is hard to say which one is the best-case and which one is the worst. It is either you or your ex-spouse become responsible for your former loan or credit cards. Generally, the total amount of the money borrowed is split between the divorcing spouses, depending on the individual income of every spouse.

On the one hand, if you are obliged to pay off the outstanding balance on your joint credit cards, it implies extra payments to make. If your ex-better half is awarded this “pleasure” of paying down your joint debt, this might seem much more acceptable and convenient to you. But here is where the root of all your credit score evils hides. Once your ex-wife or ex-husband fails to pay on time or misses a payment, it will affect your both credit histories. Both of the credit reports will indicate the missed or overdue payment. That is how your good credit can go bad. And if your ex never had a reputation of a diligent credit card holder, say hello to bad credit cards.

What can be done about that?

Well, most of the divorces do not come out of the blue. So, before all the divorce proceedings you should better first settle all financial issues with your spouse. Actually, it is better for both of you to have your individual credit histories and keep them fresh, as well as have separate bank accounts, cell phones, credit cards, etc. in your own name. But it is quite natural that when it comes to some big purchases or loans, you apply jointly. A car loan or a mortgage can require both incomes to qualify.

If you realize that your marriage stands no chances to be saved and you consider divorce as the only option, you should establish credit history in your own names before you file for a divorce. Though you will have to start afresh by applying for a secured or a prepaid card, it will be better for your financial standing.

Convert all joint accounts into individual account. This will make the matrimonial suit in the divorce court pass without serious complications associated with dividing financial responsibilities. Concentrate on splitting credit card accounts first, as credit consumers tend to miss their monthly payments on plastics more often than on secured loans.

With separate credit histories and credit card accounts you can undo the teeth, cast off the marriage chains and start writing a new page of your life.

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