Protecting your credit is one of the most overlooked parts of a divorce — and it affects far more than your ability to borrow. Many employers check credit history before extending a job offer.
Pull your own credit report as early as possible in the process. It’s common to discover accounts or debt your spouse opened without your knowledge. You’re entitled to a free report annually from each major bureau at annualcreditreport.com.
If you find an account you don’t recognize, request the original signed application. If the signature isn’t yours, report it to your local police department and dispute the account with the credit bureau in writing.
What the divorce decree does (and doesn’t) do
Make sure your decree clearly itemizes which debts belong to which party. But keep in mind: a decree doesn’t bind your creditors. If a joint debt is assigned to your ex and they stop paying, the creditor can still come after you. Notify creditors as early as possible that you won’t be responsible for accounts opened without your knowledge or consent, and keep checking your credit report periodically after the divorce is final.
Bankruptcy has long-lasting effects and should generally be a last resort — talk to a financial advisor or attorney before deciding it’s the right move for your situation.