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Does separation/divorce have an adverse affect on FICO scores?

New Visitor

Does separation/divorce have an adverse affect on FICO scores?

Unfortunately, I am going through a separation/divorce. After doing research (free legal advice through a lawyer), I heard my FICO score will be significantly reduced (up to 30 or points in some cases) once the separation/divorce is final.

Is this true?

How can I prepare for this?

5 REPLIES
Moderator Emeritus

Re: Does separation/divorce have an adverse affect on FICO scores?


omegaman wrote:

Unfortunately, I am going through a separation/divorce. After doing research (free legal advice through a lawyer), I heard my FICO score will be significantly reduced (up to 30 or points in some cases) once the separation/divorce is final.

Is this true?

How can I prepare for this?


Welcome to the forums.

 

This is 100% false. You can read this thread to see What's Not in Your FICO Score.

Senior Contributor

Re: Does separation/divorce have an adverse affect on FICO scores?

I'd remove spouse from AU on any cards and close anything joint. It would suck, score-wise, but prevent any increase in debt or late payments from happening.


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Moderator Emeritus

Re: Does separation/divorce have an adverse affect on FICO scores?


drkaje wrote:

I'd remove spouse from AU on any cards and close anything joint. It would suck, score-wise, but prevent any increase in debt or late payments from happening.


I agree with this. I was only speaking of marital status being looked at as part of a score.

 

You should certainly protect yourself financially as much as possible.

Valued Contributor

Re: Does separation/divorce have an adverse affect on FICO scores?


MarineVietVet wrote:

drkaje wrote:

I'd remove spouse from AU on any cards and close anything joint. It would suck, score-wise, but prevent any increase in debt or late payments from happening.


I agree with this. I was only speaking of marital status being looked at as part of a score.

 

You should certainly protect yourself financially as much as possible.


Exactly.  Your score will only be affected by the mistakes you or your spouse make during the process.  Do your best to keep it friendly, and separate your finances quickly, and cleanly.  Most importantly, keep lines of communication open.  If your ex-spouse can't meet a payment that you are also legally responsible for, you'll have to pay it if you don't want your credit dinged.

Sell or refinance any joint obligations like house or cars into the name of the person keeping them.  Pay off any joint credit cards, and close them.  Remove any authorized user accounts.  And don't forget to separate your names on any utilities or other bills.

 

It is common for divorce to result in credit problems, but the divorce itself is not an item that will show up on your report.  If thinks go south, and they stop making payments on debt with your name, that is when your credit will be affected.

Good luck;

 

 

3-26-15: FICO EXP: 828 - EQU:820 - TRAN: 828 - AVG: 825 +275 points from JUN 2008 - MY CREDIT JOURNAL

Established Contributor

Re: Does separation/divorce have an adverse affect on FICO scores?

Additionally, there are over 100 different Fico Generated reports. They can be industry specific, like auto loans, mortages, credit card enhanced scores etc. Therefore you will usually be close to what ever the entity pulling the score is.

Starting scores 01/02/2012 EQ 707(Fico) TU 733(Fico)XP 735 (FAKO)
Updated scores 05/01/17 EQ 824, TU 812 EXP 810 (all Fico scores) Remember the Three P's: Pay early in Full, Pay on Time, Patience