Navigating Texas divorce proceedings is stressful and time-consuming. It also presents unique financial, challenges. Here are a couple of tips for protecting one’s financial health, particularly one’s credit, during a divorce proceeding.
The connection between divorce and credit
Algorithms for credit scores do not take into consideration marital status or income. However, divorcing individuals who have amassed debt on their credit cards may find that their divorce-related decisions may impact their credit scores. For instance, perhaps two divorcing spouses decide to divide their debt. Unless they have enough income to support themselves outside of the marriage, they may use their credit cards more, which typically causes their credit scores to decrease.
In addition, people who are getting divorced may choose to close some of their credit card accounts during this process. By doing this, they are decreasing the overall amount of their available credit. This will, in turn, cause their credit utilization ratios to increase, which will ultimately lower their credit scores.
Where to turn for help and support
Divorce is rarely an easy process from a financial standpoint, even in the most amicable of situations. Fortunately, an experienced Texas attorney can help a divorcing individual to make educated decisions regarding these matters, including the division of assets and debt. An attorney will work to ensure his or her client’s rights are protected while pursuing the most personally favorable outcome for the client given the unique circumstances surrounding the divorce proceeding.