Fixing your credit after a divorce

A divorce wrecks havoc on a person's emotions and personal well-being, but it is the financial hardships of a divorce that sometimes take even longer to overcome. Even the most amicable of divorces can lead to payments being missed and dings ending up on both people's credit reports. But when the fallout from a divorce is at its worst, judgments, foreclosures, and bankruptcies can all come into play; and can all destroy the credit ratings of both people involved.

Divorce is one of the many scenarios that illustrate the basic unfairness of the credit reporting system. When a couple separates, the debts they have incurred as a partnership are divvied up among each party so that only one person is responsible for making the house payment, car payment, credit card payments, etc. The problem is that, even when a judge assigns the debts to each person, the creditors involved do not respect that fact the only one person is accountable for each debt.

When trying to collect a debt, creditors will try to hold both parties responsible. So, for example, even if a judge has declared that one party is wholly responsible for paying off a credit card balance, when payments start coming in late, the credit card company may start adding negative listings to both people's credit reports. It is not uncommon for someone who has gone through a divorce to suddenly start seeing negative marks appear on their credit reports for accounts that they are not responsible for and were not even aware were in poor standing.

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