If you are contemplating ending your marriage, you may face a variety of challenges. For example, you may need to divide marital wealth, plan for child custody and find a new place to live. You may also face an uncertain financial future. Fortunately, divorce may have a positive effect on your credit score.

Divorce by itself does not have a direct effect on anyone’s creditworthiness. That is, your credit score does not increase or decrease simply because you have ended your marriage. There may be some related credit benefits to divorcing your spouse, however.

Building your own credit 

You and your spouse may have been together for a long time. If so, your creditworthiness may have linked with your partner’s during your marriage. After your divorce, though, you have an opportunity to build separate credit. If you make payments on time, your credit score is apt to rise. This approach may be particularly important if you do not have much credit of your own.

Dividing marital debt 

In Texas, married spouses jointly own marital assets. They also have an equal ownership interest in outstanding debts. Paying off and closing joint accounts is a good way to ensure that your soon-to-be ex-spouse does not harm your creditworthiness after your divorce concludes. Negotiating a settlement in during your divorce may be a good strategy for addressing marital debt.

Refinancing outstanding debt 

If your divorce settlement separates the debt that you and your partner jointly own, you may want to explore refinancing. Doing so may remove the non-paying spouse’s name from the account. This ensures that you are no longer responsible for your ex-spouses’ financial actions. Not all creditors accept these arrangements, however.

In the lead-up to your divorce, you are likely to have a great deal on your mind. To build a solid financial foundation, you must think about your credit score. Fortunately, if you act diligently, the end of your marriage may be good for your creditworthiness.