Financial security following a divorce is an issue that should not be overlooked. It can be easy to overlook the small details or long-term implications of decisions made during property division, particularly when the initial effects might feel immediate. However, forgetting about things like credit scores and how these numbers can impact future finances can lead to undesirable outcomes for California residents.
Divorce in and of itself does not harm a person's credit score. However, the decisions and actions made during and after a divorce certainly can. Untangling years or even a lifetime of marital property -- including debt -- can be complicated, particularly if there are several complex accounts. However, once everything is divided up and the divorce decree is approved by a judge, most people are content to focus solely on their portion of the assets.
Unfortunately, creditors are not interested in a person's divorce decree. Take the example of a credit card that a married couple took out jointly. One person might agree to pay off that debt if the ex-spouse agrees to pay off a different debt, which can be an effective way of splitting up debt. But what if one person misses a few payments or decides he or she would rather not pay? Creditors would come after both people named on the count regardless of what the divorce decree says, so it is a good idea to be aware of debts and to make sure they are paid on time.
The idea of checking up on an ex or monitoring an account that he or she is now responsible for is not pleasant. However, protecting a credit score is often worth the extra effort. Decisions made during property division have a real and long-lasting impact on people's lives, so people in California should be prepared to consider and protect their future financial security during this process.