Many of the concerns when a marriage ends relate to financial matters. While many Alberta divorcees are focused on issues like child custody and spousal support following a separation, personal finance considerations such as credit scores and retirement savings should also be considered. There are a few ways that people can take a credit hit during a divorce.
An Alberta divorce that results in the need to take on more debt is the most direct way that someone's credit can suffer from such a life change. For example, some people take on more of the debt during a divorce often due to having a higher income or a higher percentage of assets. While courts try to make these arrangements as fair as possible, there can be major challenges if a spouse hides assets or refuses to pay an agreed-upon share of the debt.
Losing a second person's income can also have an impact on finances, including credit. The change can force certain decisions, such as refinancing a home or taking on additional debt. Additionally, missing bills in a shared property can be common as exes attempt to sell a marital home, so communication to avoid issues in these proceedings can be necessary even if it is difficult.
Financial issues can result from divorce for several reasons. Sometimes it is due to a change in circumstances, while other times an ex spouse can act maliciously to cause financial harm. Finding a trusted Alberta family lawyer is important for those looking to protect and fight for their interests during a divorce.
Source: Credit.com, "10 Ways Divorce can Affect your Credit", Josh Smith, Dec. 15, 2017