Tag Archive for: paying bills during divorce

Divorce and Your Credit Score

Simply ending your Bucks County marriage cannot cause your credit score to drop. The actions you and your spouse take before, during, and after your divorce can cause credit problems in the short term and long into the future. You can mitigate credit damage by reassessing your financial obligations during proceedings, ensuring bills are paid, and separating your financials as soon as possible.  

Below, we discuss the connection between divorce and your credit score, as well as tips to limit the fallout.  

Be Strategic About Paying Bills

Your credit score after divorce can remain the same as during your marriage as long as you pay your bills on time. Financial separation is crucial during this period, so you (and you alone) are responsible for your bills.  

Think about the bills in your name and who pays for them. For example, paying off your credit card each month will remain your responsibility if the account belongs to you alone. Joint assets can create problems for divorcing spouses, especially if they default on a loan.

Say you and your spouse share a home, and both of your names appear on the deed and mortgage. If you move out and don’t pay your share of the mortgage, your credit can suffer because your name is still attached to the loan. 

The connection between divorce and lower credit scores often has to do with not paying bills. Whether this is due to stress or lifestyle changes, your credit score might take a hit. 

Don’t Take On New Debt

Lawyers often guide couples through the complex process of divorce and debt division. Legal professionals strongly advise against taking on new debt, especially if the asset doesn’t belong to you. This includes:

  • Mortgages
  • Car payments
  • Student loans
  • Credit card debt

You could be on the hook for payments that you agreed to during your marriage, especially if you signed as a primary or co-signer for your spouse. For example, if a husband has student loan debt and the wife was a co-signer on that loan, she could become liable for future payments despite a divorce. If she stops paying amid a separation and the husband is not able to pay, then the wife’s credit score could be impacted.

Avoid Joint Account Liability

Perhaps the biggest credit impact of divorce boils down to keeping joint accounts when you’re no longer legally married. Start over by closing these accounts and only using bank or credit card accounts solely in your name. I recommend this step because it helps alleviate certain financial obligations tied to your ex once you officially end the marriage. 

Changing your existing account numbers in case your former spouse still has access to them is a good idea. For example, your computer may save one of your credit cards and allow your ex to make purchases on your dime. Changing your account information prevents this, helping you achieve an independent financial future. 

Prepare for Your Future With a Professional Divorce Attorney

Mitigate the impact of divorce and your credit score with the help of Karen Ann Ulmer, P.C. Our knowledgeable family lawyers can guide you through proceedings and assist with child custody agreements, alimony, and more. 

Call (866) 261-9529 or submit our online booking form to request a consultation – we’re standing by and ready to help.

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Who Pays the Bills During Divorce Proceedings?

Studies have shown that going through a divorce can take a huge physical and mental toll on a person. Divorcees are more likely to have health-related issues including heart issues and depression.

A divorce can also present problems for a person’s financial situation, especially if they share joint finances with their soon-to-be ex-spouse. They might struggle to answer the question, “Who pays the bills during divorce proceedings?”

If you’re going through a divorce, you’ll want to answer this question first. It will prevent you from falling behind on your financial obligations during the divorce process.

If You and Your Partner Are on Good Terms

Recent surveys suggest about one-third of divorced couples describe their splits as “amicable.” If you and your partner are ending your marriage but are still on good terms, it should bode well for you when answering the question, “Who pays the bills during divorce proceedings?”

In this case, you and your partner should attempt to stick to the status quo and continue paying your bills just like you always have. If, for instance, you’ve traditionally used both your paychecks to cover household expenses, keep doing this.

Take this approach to paying:

  • Mortgages
  • Insurance premiums
  • Utilities
  • Car notes
  • Grocery bills
  • Daycare costs

Just confirm your partner is holding up their end of the bargain. Gain access to online accounts you share and check to see that they’re making payments.

If You and Your Partner Aren’t on Good Terms

While some couples keep things cordial during divorces, others end up on bad terms from the second they separate. This can complicate matters when answering the question, “Who pays the bills during divorce proceedings?”

If you and your partner are going through a contentious divorce, you shouldn’t simply trust them to continue to operate in good faith when it comes to paying the bills. You both need to sit down and come to an official agreement about who is in charge of paying which bills.

You might even want to secure a temporary order from a judge laying out how you’ll pay your bills. This order will reveal:

  • How much income you and your partner make
  • Which of you is responsible for paying which bills
  • What will happen if one of you decides not to pay bills

A Word of Caution

Divorce often brings out the worst in people. This is especially true in divorce cases involving alimony and child support.

If you have the slightest inclination that your divorce proceedings might not go smoothly, work with a divorce attorney to create an agreement between you and your partner.

Contact Karen Ann Ulmer, P.C., for Help With Complicated Divorce Issues

“Who pays the bills during divorce proceedings?” is just one of many questions you’ll encounter as you go through the divorce process. You might also have to work out issues as you divide your marital assets and take other important steps.

Karen Ann Ulmer, P.C., can speak with you about your situation and aim to make your divorce less stressful. Call 866-311-4783 to schedule a consultation.

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