Divorce impacts much more than just your relationship with your ex-spouse. It can shape other facets of your life such as your living and commute arrangements, workplace relationships and/or performance, and your financial future. Given that divorce is a major disruption on many levels, it is normal to feel unsure or anxious about what your post-divorce income and financial opportunities may look like. 

To that end, people often ask us about what to expect in terms of credit score. After all, a credit score is associated with being able to rent or purchase a home, take out a loan, start accounts with various utility and commercial companies, and more. For today’s post, we’re looking at the connection between your credit score and a recent or upcoming divorce in California.

Divorce and Credit Score are Not Directly Connected

The first thing to know is that the credit reporting agencies don’t actually view marital status or a divorce itself as a factor in your credit score. Instead, this credit score is based on several factors such as the total amount of debt that you carry, the number of accounts that you have open, and repayment history including issues such as missed payments. 

So strictly speaking, divorce does not actually hurt your credit score directly. That said, the reason that this myth is perpetuated is because there are indirect ways which divorce can hurt your finances and in turn, your credit score.

Why Credit Scores Changes are Associated with Divorce

Before divorce is finalized, all assets and debts are split equitably between both parties. Given their new financial situation on each side, assuming some of these debts can cause problems for newly-divorced individuals. Any disruptions to either party’s bill-paying routines can impact their credit score. Worse yet, in some cases creditors may disregard divorce decrees and stll come after you even if the ex was assigned a debt. This is particularly complicated because most people have no control over whether their ex is keeping up with debt payments or not.

Unfortunately, many divorced individuals can find their finances and their credit score hurt due to unpaid debts and less household income. 

Talk to a CA Family Law Attorney Today

This post highlights just some of the financial challenges that soon-to-be-divorcees as well as divorced individuals face in CA. Due to these risks and challenges, the possibility that your divorce could hurt your credit score is tangible. 

Protect your finances and your future by consulting with an experienced family law attorney. Call us at 925-271-0999 to connect with the seasoned team at the White Oak Law. Our track record highlights our extensive success in advocating for our clients, and our team is here to help you with any matter relating to family law in CA.