If you decide to close out your joint credit cards, which some divorce lawyers recommend doing, it will ding your credit score just a bit.
The state of Missouri is considered an equitable distribution state. This means any assets you acquired while married are subject to division. While the state doesn’t necessarily divide assets equally in all cases, it does seek to do so fairly. The same applies to debts. If you and your spouse accrued debt during your marriage, the court is also going to divide it. So, why is this important?
Once your divorce is finalized and your assets and debts are divided, you will be responsible for paying back any creditors you and your spouse owed. If you cannot afford to pay them back on your own and your spouse isn’t willing to comply, you could default on your debts. When a debtor fails to repay a creditor after a certain period of time, the creditor will report this to the three major credit bureaus.
Let’s look at a few other ways divorce can negatively impact your credit score
Aside from defaulting on joint debts, your credit score may also take a hit if you and your ex-spouse are still listed jointly on credit cards. Here are a few examples of how this can happen.
Arguing couple; image by Afif Ramdhasuma, via Unsplash.com.Your ex-spouse continues to use the credit cards and you aren’t able to keep up with payments.
Your ex-husband or wife allowed your credit card balances to reach beyond 30 percent of your credit limit. Finance experts recommend that credit card holders keep their balance under 30 percent of their credit limit to avoid negative reporting1.
Closing out credit cards can also negatively impact your credit score
If you decide to close out your joint credit cards, which some divorce lawyers recommend doing, it will ding your credit score just a bit. Even if your card was in good standing and you closed it out without a balance, it can still negatively affect your credit history.
Have other divorce-related questions? A lawyer can help.
Whether you’ve just started the divorce process or haven’t yet filed, you may have pressing questions only skilled Kansas City divorce lawyers can answer. But finding the best Missouri divorce lawyers can take time.
If you’d like to get your questions answered and don’t want to have to spend hours scouring the internet looking for divorce attorneys who can best address them, USAttorneys.com is here to help.
We’ll find you a divorce attorney so you can focus on other areas of your life
Divorces can be confusing and give rise to many uncertainties. If you’re looking to enter the proceedings prepared and well-informed, let us connect you with experienced divorce and child custody lawyers who are eager to assist you. Some individuals will seek help from a custody attorney when minor children are involved in a divorce.
Have questions about this article or a legal concern? Call 800-672-3103.
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