Divorce is painful.
In addition to the emotional and familial challenges, divorce can also affect your finances.
How does divorce affect your credit? Divorce itself does not have a direct effect on your credit, credit history or credit scores.
Your marital status is not used to assess your creditworthiness, and that’s true whether you are divorced or not. Now to the not-so-good news. Divorce can indirectly affect your credit in several ways.
Because many married couples have some joint financial obligations, the way you handle the financial separation will determine if and how your credit scores change. Understanding the potential impact can help you plan ahead and avoid costly mistakes.
Story by Rob Berger for MSN Money.
