The effect of property division on your credit report
Divorce can be an incredibly stressful process for both spouses and their families, as many Massachusetts residents know. Some people may try to rush through the property division portion of the divorce in hopes of ending the entire process as soon as possible, especially if the former spouses are at odds with one another. However, how property and finances are divided after a divorce can have long-term effects on a person’s credit score.
After assets are divided, some former spouses realize that they have not only acquired financial accounts or property deeds but also the debt that comes with them. Many people who have a property, like a home, transferred into their name find it necessary to refinance, which can dramatically increase their debt. Bills may also be overlooked after assets are divided. The home may be in one spouse’s name, but the utilities may be in the other’s name. There may also be occasions where one person may hide debts from his or her spouse during the divorce.
The amount of credit one person is able to acquire also changes after a divorce. A single-income household will not qualify for as much credit as a household with two incomes. It can be difficult for some former spouses to adjust to having access to only one income. Financial accounts may need to be checked to make sure that only one individual has access because sometimes, even after a divorce is final, both parties may still be able to withdraw funds.
Property division can be a difficult topic for divorcing couples to discuss. Massachusetts couples who have questions concerning divorce or property division could benefit from consulting with an attorney. Lawyers can also help divorcing couples to communicate effectively with one another about other difficult topics like child custody or support payments.
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