Divorce is notorious for being a huge financial burden. However, the impact on credit scores can be particularly harsh for women in Colorado. While divorce proceedings don’t have a direct impact on credit history, the resulting financial difficulties can cause women to miss payments or even default on certain accounts. These circumstances can significantly lower a person’s score, making it much harder to buy a car, purchase a house and secure independence after a divorce.
A big reason why credit often suffers after a divorce is due to creditors not honoring divorce decrees made in court. If a judge decides that one party is responsible for paying a car loan even though both ex-spouses have their name on it, the creditor will still punish both parties in the event of a default. This situation applies to all types of loans, including mortgages and credit cards. If one party decides to default on multiple accounts, the impact on the other party can be disastrous.
The reason why women are disproportionately impacted financially after a divorce is because they tend to make less money than men. According to the Bureau of Labor Statistics, women earned nearly $200 less per week than men in 2018. Less income means less money to pay for housing, food, clothing and health care, and that means less money to pay off loans.
A divorce attorney could help a client protect their credit scores during and after a divorce. The lawyer may analyze the financial circumstances and try to discover any legal remedies available. Since divorce can involve a lot of complicated emotions, it’s often important to have legal support.