Divorce can create financial stress in every area of your life, including your credit. The outcomes of a divorce can directly or indirectly impact your credit score, so protection is important.
In Maryland, divorce does not erase shared debts or change credit history. Taking steps to manage debt and separate financial ties early can help you protect your credit throughout the process.
Close or freeze joint accounts
Start by identifying all joint accounts, including credit cards, loans and lines of credit. If both names appear on an account, both individuals remain responsible, even after separation. Work with the lender to close or freeze joint credit cards to prevent future charges. Pay off balances or transfer them to individual accounts wherever possible.
Monitor credit reports regularly
Request credit reports from all major credit bureaus. Reviewing these reports helps identify missed payments or unexpected changes. Continue to monitor credit regularly during the divorce. This makes it easier to catch mistakes or unauthorized charges early.
Separate household bills and responsibilities
Try to create a clear agreement about who will pay which bills while the divorce proceeds. Missed payments on shared utilities, car loans or mortgages can damage both spouses’ credit. Maryland law does not automatically assign responsibility for debts until a court issues a final order, so cooperation is important during the transition.
Communicate with creditors
Reach out to creditors and lenders to explain the situation and request payment plans if necessary. Some lenders may offer short-term hardship assistance. Although divorce is personal, lenders focus only on account status and repayment, so keeping them informed can reduce risks.
Build credit independence
Apply for new accounts in one name only to begin building independent credit. Make on-time payments and keep balances low to improve credit scores. Taking control of personal finances now creates a stronger foundation for life after divorce.
Protecting credit requires focus and planning. You can avoid long-term credit damage by separating finances early, communicating clearly and staying informed throughout the divorce process.
