There are so many factors to consider when an Ohio marriage ends. Often, a divorce will force the parties to hammer out the details regarding asset division, child custody/support and new living arrangements, just to name a few. One topic that may be overlooked, at least to begin with, is how a divorce may affect the credit of the parties.
A divorce can be costly. The hiring of legal representation is not often inexpensive. If the process is drawn out over time, particularly if issues are litigated in court, the expenses can mount quickly. Some people may be tempted to pay these expenses with a credit card, potentially causing a negative hit to a credit rating.
Many married couples have joint credit card accounts, as well as have joint mortgages and other forms of shared debt. During the divorce process, it may get confusing as to which person will be responsible to make what payments. Payments can be missed if there is no clear allocation early on, causing the credit rating of both to suffer. If the divorce is contentious, it makes sense to monitor all accounts, particularly if it is necessary to guard against a spiteful ex intentionally missing payments or opening accounts and running up more debt.
Once an Ohio divorce is imminent, all joint accounts should be separated, and a written agreement outlining shared debt payment responsibility could be immensely helpful. This may help in the protection of the credit scores of each party. Other suggestions may be made by the respective attorneys retained by the parties.
Source: nasdaq.com, "3 Ways Divorce Can Affect Your Credit Score", Shawn Leamon, Jan. 10, 2017