If you are contemplating ending your marriage, you may have some uncertainty about your financial future. While Indiana law entitles you to an equitable share of marital assets, you may also need a good credit score to begin the next chapter of your life. You are probably wondering if a divorce is likely to ruin your credit rating. 

Typically ranging from 300 to 850, a credit score quantifies a person’s borrowing potential. By itself, divorce does not affect anyone’s credit score. Still, there are some divorce-related matters that may drive an individual’s credit rating downward. 

A decrease in income 

If both you and your soon-to-be ex-spouse work, you have two incomes to devote to expenses. A divorce leaves you with fewer financial resources to meet your monthly obligations. If you fall behind on your bills after your divorce, your credit score may drop. Accordingly, you may want to seek spousal support to ensure you continue to have the ability to make timely payments. 

New expenses 

While credit reporting agencies use a variety of metrics to calculate a credit score, they usually consider a person’s debt-to-income ratio. That is, if you have too much debt relative to your income, you may have a lower credit score. If your divorce requires you to take on additional debt, such as purchasing a new home, your creditworthiness may take a hit. 

Your ex-spouse’s spending habits 

You and your partner probably have joint credit cards, loans or other types of shared debt. If you do not use your divorce to separate debts and remove your name from accounts, your ex-spouse’s spending habits may be disastrous for your credit score. It is critical to address joint debts in a proactive way during your divorce proceedings. 

If you are in an unhappy marriage, divorcing your spouse may bring a brighter future. Still, because a decent credit score is vital for your post-divorce financial success, you should carefully monitor your creditworthiness for signs of trouble.