Debt after Divorce: 38% of Divorcees See a 50-Point Drop in Credit Scores

Debt after Divorce: 38% of Divorcees See a 50-Point Drop in Credit Scores

February 5, 2020         Written By Bill Hardekopf

Money is an influential part of any relationship, but the influence doesn’t end when the marriage is over. According to a new study from Debt.com, 40% of divorced Americans incurred at least $5,000 in debt after their divorce. Additionally, 38% of divorcees saw a 50-point decrease in their credit score shortly after the divorce.

For many divorcees, the financial woes started while they were still married: 39% of divorced respondents said debt played a role in their divorce. Moreover, 43% said they are now solely responsible for a joint debt they shared during their marriage.

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Financial discussions are a critical component of preventing a divorce. Last year, the Harris Poll found that 88% of couples believed it was important to discuss money before getting married, but only 51% followed through with those discussions. A separate study from eMoney Advisor found that 57% of couples purposefully avoid talking about money for fear of conflict.

Whether you are married, engaged, in a committed relationship, or on the verge of divorce, talk to your partner about your finances. Nearly two-thirds (63%) of marriages in America start with debt, and the bulk of that debt comes from credit cards. Be transparent about your financial struggles, and make a plan together to eliminate debt and boost your savings. The conversation may be uncomfortable, but it could be the gateway to a much happier future for your relationship.

The information contained within this article was accurate as of February 5, 2020. For up-to-date information on any of the terms, cards or offers mentioned above, visit the issuer's website. Many of the offers on this article are from our affiliate partners, and LowCards.com may be compensated if you take action with any of our affiliate partners.

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bill-hardekopf

About Bill Hardekopf

Bill Hardekopf is the CEO of LowCards.com and covers the credit card industry from all perspectives. Bill has been involved with personal finance for over 15 years. He is a frequent contributor to Forbes, The Street and The Christian Science Monitor.