How to Protect Your Credit During Divorce
- Lisa McNally
- Aug 10, 2025
- 4 min read
Divorce is hard enough without adding a wrecked credit score to the mix. Yet, many people going through a divorce unknowingly make decisions (or fail to act) that lead to lasting credit damage.
As a Certified Divorce Financial Analyst (CDFA®), Divorce Coach, and Mediator, I’ve seen firsthand how easily financial entanglements during divorce can affect your creditworthiness for years to come.
At Optimal Divorce Solutions, I work with clients across the U.S. to help them protect what they’ve worked hard to build. Your credit score isn’t just a number—it can determine your ability to qualify for a mortgage, lease a home, refinance property, buy a car, or even secure a job. So, let’s talk about how to keep yours intact during and after divorce.
Why Credit Matters During Divorce
When you’re legally separating finances, emotions often run high—but your credit report doesn’t care who was "supposed" to pay the Visa bill. Any joint account, co-signed loan, or shared mortgage can leave both spouses exposed to damage, regardless of what your divorce decree says. That’s why protecting your credit isn’t just important—it’s critical.
Step-by-Step Credit Protection Plan
1. Pull All Three Credit Reports Immediately
Get a clear snapshot of your current credit situation by pulling your reports from Equifax, TransUnion, and Experian. You’re entitled to one free report from each bureau annually through AnnualCreditReport.com.
This is your starting point. Review:
All open accounts
Joint vs. individual ownership
Missed or late payments
Credit inquiries
Debt balances and credit utilization
If you're working with me at Optimal Divorce Solutions, I can help you review your reports and flag potential red flags.
2. Identify and Close Joint Accounts
Every joint account represents shared liability. Even if your spouse promises to pay, if they don't, your credit will suffer.
Steps to take:
Freeze or close credit cards with joint access
Refinance or remove names from joint loans, where possible
Transition household bills (utilities, subscriptions, etc.) to individual accounts
Note: Don’t rush to close longstanding accounts if they are solely in your name—that could hurt your score. Strategic planning is key here, and it’s something I guide clients through carefully.
3. Set Up Credit Monitoring Alerts
Fraudulent activity, missed payments, or identity misuse can happen during divorce—sometimes even unintentionally. Setting up real-time credit alerts will help you stay ahead of problems.
Popular tools include:
Credit Karma
Identity Guard
Your own bank or credit card provider
4. Secure Your Identity
If tensions are high, identity protection becomes essential. I often recommend divorcing clients:
Change online banking and password info
Use two-factor authentication on all accounts
Notify banks and creditors about your pending divorce
5. Create a Post-Divorce Credit Strategy
Once the divorce is finalized, it’s time to rebuild or strengthen your financial independence:
Establish new credit in your name
Rebuild credit if scores took a hit
Track credit utilization to stay under 30%
At Optimal Divorce Solutions, I help clients map out a customized credit and budgeting plan, especially if you’re transitioning to a single income or recovering from debt accrued during marriage.
Specialized Considerations for High Net-Worth or Gray Divorce
Divorces involving substantial assets often involve:
Complex real estate holdings
Multiple mortgages or HELOCs
Business credit lines
High-value joint accounts
As a Certified Divorce Real Estate Expert (CDRE) and Licensed Real Estate Broker, I provide specialized guidance on property-related debts and liabilities that can impact your credit. Whether it’s refinancing the marital home, understanding credit implications of buyouts, or preparing to purchase a new residence, I ensure your credit isn’t an afterthought.
When Divorce Decrees Don't Protect Your Credit
Many people falsely assume that if the divorce decree assigns debt to their ex-spouse, they’re no longer liable. This is not true.
Creditors are not parties to your divorce agreement.
Even if your ex is supposed to make payments, you’re still legally responsible if your name remains on the account. This is why proactive planning is essential.
How I Help Clients Avoid These Pitfalls
As a Divorce Coach and Financial Analyst, I provide behind-the-scenes support that attorneys and mediators often overlook. Here’s how I help:
Clarify ownership and liability on joint debts
Create a debt payoff strategy that fits long-term financial goals
Provide insight on how credit will be affected by proposed settlements
Offer post-divorce coaching to rebuild credit and financial health
These steps are often neglected during the chaos of divorce—but I ensure they’re prioritized.
Key Takeaways
Check all three credit reports early in the divorce process.
Joint accounts = joint liability regardless of the divorce agreement.
Use credit alerts and identity protection tools to stay secure.
Work with a CDFA® and CDRE to create a strategic financial and credit recovery plan.
Don't assume your attorney is handling your credit—consult a financial divorce expert for protection.
You only get one shot to protect your credit during this transition. Let’s make sure you do it right.
I offer nationwide support and customized guidance to protect your credit, assets, and peace of mind through this process. Whether you're in New Hampshire, Maine, or anywhere else in the U.S., you don't have to figure this out alone. Schedule your free consultation today and let’s create a plan that works for your future.
Lisa McNally
Certified Divorce Coach | Certified Divorce Mediator
Certified Divorce Financial Analyst (CDFA®) | Certified Divorce Real Estate Expert (CDRE)
Licensed Real Estate Broker (NH & ME)
Founder, Optimal Divorce Solutions
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