How to Protect Your Credit During Divorce

Adults signing divorce application

According to, the national average cost of a divorce is about $15,000 per person, and the average duration takes about 11 months. That’s a lot of time, money, energy, and sometimes worry. The unknown of what’s to come and how will I get through this can be scary.

When it comes to your financial health, know that filing for divorce will not affect your credit score. Though, there are ways it could indirectly hit your creditworthiness.

Here are seven ways to protect your credit — and your financial health — during divorce:

Plan to live on less money

You have to maintain the same household with fewer resources. So, the sudden loss in income can make it easy for debt to pile up. That’s why it’s important to create a budget. Consider major monthly expenses like housing or car payments. Can you temporarily move in with a roommate? Maybe trade in your car for something more affordable? If not, think smaller scale like canceling cable, carpooling to work, or even spending less on groceries.

There’s also (potentially) the option of getting a part-time job. Think about driving for Lyft or Uber, or maybe working in the service industry so you can meet new people while you bring in a little more income.

Understand how debt is divided

Each state has its own laws for dividing debt and assets. Some states separate them based on who brought what into the marriage. Other states consider equal ownership of everything, including debt. However, if a prenuptial agreement exists, it will influence any decision. Be sure you know how debt will be divided in advance. This way you can prepare for the next steps.

Avoid debt delinquencies

Divorce is expensive, and it can be emotionally draining making it easy to forget about monthly household bill payments. Don’t let that happen! Late payment fees can create more debt, and they can also affect your credit score. Working together ensures everyone’s credit remains healthy. If that’s not an option, and you’re having trouble paying your bills, be sure to contact your credit providers. They may be able to work out a payment plan, so you’re able to protect your credit during and after divorce.

Remove one another as authorized users

Avoid taking on unnecessary debt by removing your ex as an authorized credit card user. Take yourself off their primary credit card accounts, too. Because as long as you’re listed on each other’s credit cards, you’ll be factored into one another’s credit score. So, if they’re not making payments, your credit score can be harmed.

Monitor credit card charges

Let’s not forget, many banks and credit card companies offer instant notifications that let you know when your credit card is used to make a purchase. Opting into these text messages or emails is an easy way to protect your credit and finances during a divorce.

Understand your credit limits

Most credit card agreements state that limits can be decreased at the creditor’s discretion. So if your ex made more money than you, and the accounts are separated, your credit card company can lower your spending limits. This can affect your credit score and make it easy to reach maximum spending limits. Be sure to look at your credit card agreement and plan accordingly. Consider transferring your debt to a new card with better terms. It’s a cost-effective way to protect your credit during a divorce.

Refinance your mortgage

If both names are on the mortgage, you’ll likely need to refinance. When you refinance your mortgage, a credit check is required. Though, it’s not going to damage your credit score. If anything, it’s just another expense you may encounter (when you consider fees and closing costs). Unless, of course, it’s your ex who is refinancing the mortgage to keep the home. Should your ex postpone a mortgage refinance and even go as far as not keep up with payments, you’re on the hook! Missing mortgage payments can be detrimental to your credit score, so be sure to stay on top of who is taking the mortgage over.

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Keep in mind a refinance is only necessary if one of you keeps the home. Sometimes, as a result of lower monthly income, it’s not an option. In a case like that, it’s best you agree to sell and split the proceeds. Then you can move forward with purchasing your own home, which is another reason why it’s very important to protect your credit during divorce. You’ll receive the most competitive mortgage rates if you have a healthy credit score.

Above all else, monitor your credit during divorce. Once a year, you can get a free copy of your credit report from the three major bureaus (Experian®, Equifax®, TransUnion®) at It’s important to review all three reports since some creditors and lenders don’t report to every bureau. By doing this, you’re able to fully understand which debt has your name on it and you can do every you can to protect your credit during divorce.

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