Key Takeaway
Divorce doesn't just end a marriage – it can leave lasting damage on your credit file that follows you for years. The good news? Many divorce-related defaults and credit issues can be challenged and removed, especially when proper procedures weren't followed. You're not stuck with your ex's financial mistakes forever.
Introduction
Nobody plans for their marriage to end. And when it does, the last thing you want to think about is your credit score. But here's the reality: that default your ex racked up on the joint credit card? It's sitting on your credit file right now. That missed mortgage payment during the separation chaos? Lenders see it every time you apply for finance.
At Australian Credit Solutions, we've helped thousands of Australians navigate the financial aftermath of divorce. We're ASIC Licensed (ACL 532003), and we've been recognised as industry leaders three years running (2022, 2023, 2024) for our results in credit repair.
Understanding How Divorce Impacts Your Credit Score
Let's be clear: divorce itself doesn't appear on your credit file. There's no "divorced" stamp that lenders see. But the financial fallout from separation? That absolutely shows up.
When you're married or in a long-term relationship, your finances often become intertwined. Joint home loans. Shared credit cards. Car finance in both names. Here's where it gets tricky: even if you had an agreement with your ex about who would pay what, the credit bureaus don't care.
If your name is on the account and the payment was missed, the default lands on your credit file. Full stop.
Dealing with Divorce-Related Credit Damage?
Get a free assessment to find out what can be removed.
Common Causes of Credit Damage During Divorce
Joint Debts That Go Unpaid
When you have joint accounts – credit cards, personal loans, car finance – both parties are equally responsible for the debt. If your ex stops paying after separation, that default goes on both credit files.
Defaults on Accounts You Didn't Know About
During a marriage, it's common for one partner to handle the finances. Your name might be on debts you've completely forgotten about – or never knew existed.
Expert Tip from Elisa
"The moment you separate, order a copy of your credit file from all three bureaus – Equifax, Experian, and illion. Don't wait. Many of our clients discover defaults they didn't know about, and the sooner you find them, the more options you have."
Guarantor Obligations Coming Back
Did you act as guarantor for your ex's business loan or car finance during the marriage? That guarantee doesn't disappear with the divorce.
How to Fix Your Credit After Divorce
Step 1: Get a Complete Picture
Request your credit file from Equifax, Experian, and illion. Note every negative listing and whether it relates to joint accounts from your marriage.
Step 2: Identify Removable Defaults
Under the Privacy Act 1988 and National Credit Code, credit providers must follow strict procedures before listing a default. They must send you a written notice, give you 14 days to remedy, and ensure the amount is correct.
Important
If you discover a default from a joint account and you never received the required default notice because your ex was living at the address, that default may be invalid. Credit providers can't claim they sent notice if it only went to one party on a joint account.
Step 3: Separate Your Finances Completely
- Close all joint bank accounts
- Remove your name from joint credit cards
- Refinance joint loans into one person's name where possible
- Update your address with all financial institutions
Step 4: Build Positive Credit History
- Pay all current bills on time, every time
- Keep credit card balances low (below 30% of limit)
- Avoid unnecessary credit applications
- Set up direct debits so you never miss a payment
Key Stat: We have a 98% success rate when we take on cases – because we only accept cases where we've identified legitimate grounds to challenge the listing.
When Professional Help Makes Sense
Signs you need professional support:
- You've tried disputing the default yourself and got nowhere
- The default involves a joint debt from your marriage
- You're facing a deadline for finance
- You're emotionally exhausted and need someone to handle the fight
Frequently Asked Questions
What Our Clients Say
928+ verified reviews from real clients
"I'm very happy with the outcome and the service provided. The team was very helpful throughout the process and kept me informed every step of the way. Highly recommended!"
"The team went above and beyond to help me. They explained everything clearly and achieved a great result. I've already recommended them to friends and family."
"I had multiple enquiries hurting my score. The team explained exactly what could be done and delivered results faster than I expected. Worth every penny!"
"Absolutely fantastic service! They helped me remove two defaults that were stopping me from getting a home loan. Now I'm in my dream home. Can't thank them enough!"
Elisa Rothschild
(BA/LLB)Principal Lawyer & Director
With over 12 years of experience in credit law, Elisa has helped thousands of Australians remove unfair credit listings and rebuild their financial futures. She leads Australian Credit Solutions' legal team with a focus on consumer advocacy and regulatory compliance.
Need help with your credit file? Get expert advice from our team.
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