The impact that a divorce has on a person’s life can be tremendous, both during the proceedings themselves as well as for months or even years after the divorce has finalized. At the White Oak Law, we are often asked about the long-term effects of divorce, especially in regards to credit history and credit scores.

Divorce is stressful enough without people having to worry about additional long-term financial repercussions. To answer some of the most common questions we hear about this issue, we’re offering a look at just how divorce impacts your credit score in California. For more information, don’t forget that you can pick up the phone at any time to speak with one of the seasoned legal experts at the White Oak Law.

What Factors Affect Your Credit Score During a Divorce?

Many clients are surprised to learn that simply filing for and getting a divorce won’t have a detrimental effect on your credit or financial history. The dings to credit that people typically experience during this turbulent time is often a result of other surrounding factors. These can include:

• Missed or late payments: It’s common for people to forget about bills during a difficult time such as divorce, especially when it comes to joint accounts. Even a single missed payment can have a noticeable impact on your credit score.
• Increasing debt: Divorce can be expensive, something that is further complicated by the fact that people can no longer depend on the other person’s income. This often leads to debt that piles up quickly.
• Mortgage refinancing: People who share property jointly with the other party will often have to refinance their mortgage, which itself requires a “hard credit check” that drops your score by several points.
• Credit limit decreases: Along with the loss of the other partner’s income comes a loss of high credit limits, and creditors will quickly adjust your accounts when they realize your total income has been decreased after the split.

As you can see, the effect that divorce has on your credit is more indirect rather than direct. Nonetheless, it isn’t uncommon for financial stresses and complications to arise during typical divorce proceedings in CA.

When dealing with these and other difficult legal issues involving family law in CA, you should always consult with an experienced attorney before anything else. Learn more about how the seasoned legal pros at the White Oak Law help clients navigate an array of family law issues, and schedule an appointment with one of our experts today.