We recently read another great article online dealing with the financial aspects of divorce. This one, by freelance writer Paul Sisolak, explains some of the ways a divorce can impact your credit indirectly and how to prepare yourself to recover financially.
Reading the article, I was reminded of a situation where all of the couple’s credit cards and debt were in the husband’s name, so that when they separated, the wife was unable to obtain a credit card because she had no credit rating.
The take-away from both Sisolak’s piece and this more extreme example of the negative impact of divorce on your credit is how important it is for both spouses to participate actively in managing the family finances during the marriage and to stay on top of those finances. Even if each spouse has their own credit card, it’s important to maintain it and pay it off on time so that both of you can build up your own credit rating.
If one spouse is in the financial “driver’s seat” during the marriage, the stress of divorce can be that much greater for the “passenger” spouse who will need to quickly learn how to drive the financial car, in addition to coping with all the other practical and emotional effects of separation.