There are multiple ways a divorce can affect the credit of Missouri couples. The actions that they may have to take during the divorce process can have a lasting, negative impact on their credit. To transfer the family home into the name of just one spouse, it may be necessary to refinance the mortgage. This will result in a close examination of one’s credit and may result in one person being saddled with additional debt.
The allocation of assets and debts during a divorce does not always result in both parties getting an equal share. It is not unusual for one party to receive the greater portion of the marital assets as well as the majority of the debt.
After the end of a marriage, it can be quite an adjustment getting accustomed to living on just one stream of income instead of two. Before filing for a divorce, it may be prudent for both parties to review their finances and develop budgets based on their own incomes so that they will not become delinquent on payments. While both parties should reveal all of their financial accounts during the divorce process, there may be cases in which one or both parties may not be completely truthful. To avoid being surprised by hidden debts in the future, it is important for both parties to obtain credit reports to determine what types of debts are in their names.
Couples getting divorced and separating their financial accounts may find that their credit limits are lowered. This can result in lower credit scores. A family law attorney may advise clients of what legal avenues should be pursued to obtain the divorce settlement terms they desire.