How to Protect Your Credit Score in a Virginia Divorce
A Virginia divorce can change nearly every part of your financial life, from where you live to how you pay your monthly bills. Unfortunately, problems with joint accounts or missed payments can follow you long after you get a final divorce order.
Worried your credit score will take a hit? Our experienced Virginia divorce attorney explains common issues to watch for and steps you can take to protect your credit and start the next chapter of your life on firmer financial ground.
How a Virginia Divorce Can Affect Your Credit Score
Getting divorced does not, by itself, lower your credit score. The bigger concern is what happens to your debts and accounts during the transition.
Debts are divided equitably in a Virginia divorce. Under Virginia Code Section 20-107.3, the Virginia Family Court considers whether any credit cards, personal loans, medical bills, or other debts were incurred before or during the marriage and can apportion them between the spouses.
However, the court’s decision does not automatically change your contract with the creditor, meaning they can still look to you for payment. Problems that can arise include:
- High balances that increase your credit utilization.
- Missed payments on joint credit cards or loans.
- New charges on a joint account.
- Negative and inaccurate information on your credit report.
Unfortunately, even if you close all joint accounts, you could still be on the hook for the balance.
Ways to Protect Your Credit During a Virginia Divorce
Financial problems are a leading factor in divorce, according to the National Institutes of Health. In addition to derailing your marriage, disputes over money and spending habits can also ruin your credit rating.
To protect it, take these steps:
- Get copies of your credit reports and carefully review the information they contain.
- Document all joint debts, authorized-user accounts, and unpaid balances.
- Monitor each account and take action if a payment is missed.
- Document who is responsible for each debt, and keep copies of statements, payment records, and communications with creditors.
- Talk to your attorney about stopping new charges.
- Open accounts in your own name to build an independent financial history.
One of the best ways to protect your credit rating in a Virginia divorce is by using marital assets to pay them off and closing the accounts before your divorce is final. In certain cases, filing for bankruptcy may also be an option. While this will definitely impact your credit rating, it may be the best way to reduce risk and start fresh
Request a Consultation With Our Experienced Virginia Divorce Attorney
Getting a Virginia divorce doesn’t have to ruin your credit. At Schwartz Kalina, PLLC, we protect your rights throughout the process and take the steps needed to ensure joint debts are addressed.
Our Virginia divorce attorneys have decades of experience representing clients and provide the trusted, local legal guidance you need to get the best possible outcome. Contact us to request a consultation.
Sources:
law.lis.virginia.gov/vacode/title20/chapter6/section20-107.3/
pubmed.ncbi.nlm.nih.gov/36661229/
