Margaret Gettle Washburn, P.C.
(770) 676-1191
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How getting divorced can negatively impact credit

Georgia couples who are considering divorce might want to be aware of how a separation can affect credit scores. With a little bit of planning, it is possible for spouses to take steps to minimize the negative financial repercussions.

A spouse who wants to keep the family home might be required to refinance the mortgage in their own name. This will help make payments more manageable and less likely to seriously hurt one's credit score. Credit can also be impacted when one ex agrees to take on a higher percentage of the debt burden in a divorce. Similarly, a spouse might suffer credit issues if the ex does not disclose all of their debts. One might want to run credit reports to make certain that they know about all the debts their spouses might have taken out in their names.

After a divorce, an ex will likely have to live with only one regular paycheck coming in. This can lead to problems for those who were in a relationship with two incomes. Some companies react by reducing the credit limits, which means that spouses will have poorer debt ratios on their cards.

A divorcee might want to work with both a financial adviser and an experienced divorce attorney so that they can preserve their credit. The lawyer can help the client understand the different financial impacts that various property and debt division scenarios might cause. Furthermore, an attorney may be able to negotiate a settlement agreement that can help the client minimize the costs of the divorce.

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Margaret Gettle Washburn, P.C.
4799 Sugarloaf Pkwy
Building J
Lawrenceville, GA 30044

Phone: 770-676-1191
Fax: 770-963-2828
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