Divorce is a significant life transition that can bring emotional and financial challenges. While many focus on dividing assets and making custody arrangements, a critical yet often overlooked aspect is how divorce impacts your credit score.
In Singapore, credit scores are regulated by the Credit Bureau Singapore (CBS), which tracks individual borrowing histories, loan repayment behaviour, and credit facilities. Unlike in some countries where spouses may have joint credit ratings, each person in Singapore maintains an independent credit score. However, shared financial obligations—such as mortgages, car loans, and credit cards—can still affect your financial standing if not properly managed during and after divorce.
How Divorce Can Impact Your Credit Score
Although CBS does not track marital status, it records financial liabilities associated with your name. If you and your spouse hold joint accounts, are co-borrowers on a loan, or if one is a guarantor for the other, delays or defaults on payments can impact both parties’ credit ratings. To ensure your financial future remains secure, it is crucial to take steps to protect your credit profile as part of the divorce process.
Financial Disassociation: Steps to Protect Your Credit
One of the most important financial steps in divorce is ensuring you are no longer tied to your former spouse’s credit responsibilities. Start by obtaining a credit report from CBS (www.creditbureau.com.sg) to identify all outstanding joint financial commitments.
From there, consider these essential steps:
- Close or Refinance Joint Accounts: If both names remain on a mortgage, personal loan, or credit card, you are still legally responsible for repayments, even post-divorce.
- Review and Update GIRO Arrangements: Ensure that automatic payments for bills, insurance, and subscriptions are linked to your personal account rather than a joint one.
- Cancel Supplementary Credit Cards: If you hold or have given a supplementary card, cancel it immediately to prevent future liabilities.
- Monitor Your Credit Score Regularly: After divorce, continue checking your credit report to ensure all joint accounts are properly closed and there are no unauthorized transactions.
Seeking Financial and Legal Guidance
Divorce can create financial uncertainties, and getting professional assistance can help you avoid missteps that could impact your financial future. Consulting with both a lawyer and a financial advisor can help ensure that your financial obligations are properly managed and you achieve a clean financial break from your former spouse.
How GJC Law Can Help
At GJC Law, we understand that financial security is a priority for those going through a divorce. Our team is committed to helping you:
- Understand your rights and responsibilities regarding financial obligations in a divorce.
- Assist in negotiating financial settlements that protect your interests.
- Provide guidance on severing financial ties to prevent future liabilities.
- Work with financial experts to help safeguard your credit score and long-term financial health.
Taking control of your financial future is an important step toward moving forward after divorce. Contact GJC Law today to schedule a consultation and ensure that your financial interests are well protected.
We’re here for you
Should you have any questions or would like more information on the Division of Matrimonial Assets, please contact Gloria James-Civetta & Co to speak to one of our lawyers.
