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The financial impact of a divorce

While filing for divorce may not have an impact on a Georgia resident's credit score, actions taken after the divorce could. For instance, it may be necessary to refinance a home as part of a divorce settlement. This may require a hard credit check, which could be enough to reduce a person's score. It is possible that living on one income makes it harder to keep up with debt obligations.

This may result in missing debt payments or paying them later than normal. Ultimately, it could have a negative impact on an individual's credit score in the short and long term. In some cases, debts are not split evenly when a marriage ends, which means that one person may have a larger debt load. It is also possible that one spouse fails to pay his or her share of a joint debt.

Credit card companies may determine credit limits based on the salary of a cardholder. When a couple splits, they may see a reduction in their credit limits because they are making less apart than they were together. This could be harmful as a person's credit card utilization rate increases as credit lines decrease. Finally, it is possible that spouses will inflict financial damage on each other during an ugly divorce, and that could result in damaged credit as well.

Issues related to money and credit may be among those at the forefront of a divorce. While emotions may run high during divorce proceedings, it may be best to avoid letting a dispute linger. Instead, it may be a good idea to have an attorney handle negotiations.

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Hecht Family Law
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Alpharetta, GA 30004

Phone: 678-926-9234
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