Divorce is hard enough without having your credit score sink like a well-thrown knuckleball.
Still, there are steps you can take to rejuvenate your score, even if it has dipped in the wake of your marriage.
Divorce rates declined somewhat during the Great Recession (that’s the good news) as more couples hunkered down, trying to hash things out rather than suffer the tough economy on their own. But divorce rates still hover around 17%, according to the National Center for Family and Marriage Research. (For the record, the state with the lowest divorce rate is North Dakota at 14.3% and the highest is Washington, D.C. at 34.5%.
So if the urge to separate is strong, and you’re headed for the rocky financial landscape of divorce, make sure you go in with your eyes wide open. If you don’t, you’re likely to join the millions of newly-divorced who find themselves in greater financial distress than when they were married.
According to a white paper from Safeguard Guaranty, divorce can “be a recipe for financial disaster.” The paper adds that divorce is “the number one common contributing factor for bankruptcy and poverty.”
But it doesn’t have to be that way — or at least that bad. A good analysis of your financial situation before you head into divorce — especially related to the health of your credit rating — can mitigate financial disaster.