Thursday, November 02, 2006

Divorce and Your Credit Score

Where's our money gone?

Once the decision to separate is made it is important to protect your credit score. It it easy to check your rating on either:


Not protecting your credit score can prevent you being able to afford to purchase a house post separation. An excellent score will result in interest rates on a mortgage being offered at around 4.2%, a poor score can double that rate.

KEEP PAYING THE MORTGAGE

Even if you have moved out of the former matrimonial home, if your name is on the mortgage then allowing it to go into arrears will have far reaching financial consequences for the future. No matter how much you want your spouse to suffer, don't cut off your nose to spite your face!!!!!!!!!!!!!!!!!

6 comments:

Julia_blog said...

Julia
your blog is so interesting. Good continuation.
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Lynne Bastow said...

Thank you

CreditMom said...

Can marital contract protect your credit history? Aren't they meant to protect peopel's financila interests if they get divorced?

Lynne Bastow said...

Are you referring to pre or post nuptial agreements? Regardless of an agreement on division between the parties, if you have a joint debt with a third party then both spouses are liable.

If you have joint debts on divorce one party can take over the debt and indemnify the other. However, the indemnity will not protect the other spouse if the indemnifier cannot pay, the creditor will then go after the other spouse.

Anonymous said...

Great Idea but what if he leaves £100,000 debt behind and a mortgage and you cant pay. House wont sell. He still wont pay half and you are left not affording it. I now have 7 defaults level 8 and had a perfect credit score. Now im screwed and cant get a mortgae. Does the ancillary relief stage care - er no . Been there and tried.

credit score said...

What happens if you have a mutual debt, is your credit score reseted?
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