How to Fix Credit After Separation Australia (2026)

Quick Answer: If defaults arose during or after a separation — from joint accounts, disputed utility bills, or entries listed while you had an active dispute under the Privacy Act 1988 — many may be removable. Common grounds include Section 21D notices sent to a vacated shared address, listing during an active billing dispute, or listing during a hardship arrangement. Successful removals take 30–90 days with score improvements of 100–250+ points. A free assessment identifies what's removable on your specific file.

Separation — whether from a marriage or a de facto relationship — creates financial disruption that often catches both parties off guard. Shared bills stop being paid, joint accounts fall behind, and credit files reflect the chaos of a life being reorganised. The damage can last long after the personal wounds have healed.

Understanding which of your credit file entries are legitimately removable — and which simply need time and positive behaviour — is the essential first step.

Why Separation Creates Credit Damage

Financial disruption from separation typically creates credit damage through:

• Joint accounts — shared debts default under both names regardless of who caused the problem
• Disputed billing — utilities and services get disputed during the transition; default listings can follow
• Address changes — Section 21D notices sent to the old shared address never reach you at your new place
• Hardship arrangements — defaults listed while formal hardship requests were active
• Missed repayments — accounts fall behind when income drops or attention is elsewhere

Not all of this damage has to stay. Under the Privacy Act 1988 and the Credit Reporting Code, defaults must follow specific rules before being listed. When those rules were broken during the chaos of separation — which happens regularly — the listings are removable.

What Makes a Default Removable After Separation

During a 3-month separation transition, a $710 EnergyAustralia utility account in both names had defaulted in one typical case we handled. The Section 21D notice had been sent to the shared property — which the client had vacated with a new address updated with EnergyAustralia. The creditor's own records showed the updated address. Sending to a known vacated address is a procedural breach under the Credit Reporting Code.

Real Case Study: Zoe, Sunshine Coast — Default Removed After Separation

Zoe, 39, a teacher from the Sunshine Coast, came to Australian Credit Solutions after separation had left her credit file with a $710 EnergyAustralia default. Her Equifax score sat at 458, blocking her ability to qualify for a home loan as a single purchaser.

We reviewed the listing. The Section 21D notice had been sent to the shared property address she'd vacated, despite Zoe having updated her contact address with EnergyAustralia weeks before the notice period. The creditor's own records confirmed the updated address was on file. Sending to a known-outdated address when a current one was available is a clear breach.

We lodged the formal dispute. EnergyAustralia acknowledged the breach and removed the listing.

Result: Zoe's Equifax score moved from 458 to 671 in 44 days. She was approved for a $340,000 home loan as a single purchaser at 6.4% — something that had seemed impossible just three months earlier.

She only paid when we succeeded.

Get a free assessment from Australian Credit Solutions →

How to Fix Credit After Separation: Step by Step

1. Get all three credit reports — Equifax, Experian, and Illion
2. List every negative entry, particularly any that arose during or after the separation
3. For each default, request the original Section 21D notice from the creditor
4. Check whether it was sent to your current address at the time, with the correct amount, with 30 full days
5. Check whether any account was under dispute or hardship assessment at time of listing
6. For any breach — lodge a formal written dispute with the creditor citing the specific ground
7. Notify the bureau and request a dispute notation
8. Escalate to AFCA or TIO if no response within 30 days

Frequently Asked Questions

Can defaults from a separation be removed from my credit file? Yes — if those defaults were listed in breach of the Privacy Act 1988 or Credit Reporting Code. Common grounds in separation situations include notices sent to a vacated address, listing during an active billing dispute, or listing during a hardship arrangement. A free assessment identifies which entries on your file have genuine removal grounds.

Am I responsible for a default on a joint account if my ex-partner caused it? Both parties on a joint account are equally listed when a default occurs — regardless of who caused the arrears. If the default was listed in procedural breach, it's removable from your file even if the other party's file is unaffected. If listed correctly, both parties carry the listing.

How long does it take to fix credit after separation in Australia? For defaults with removable grounds, the dispute process takes 30–90 days. For accurately listed defaults, improvement comes through positive repayment behaviour over 12–24 months.

Does the separation itself appear on my credit file? No — the event itself is not recorded. Only the financial consequences — defaults, court judgements, enquiries — appear on your credit file.

Can I get a home loan as a single person after fixing credit from a separation? Yes — many ACS clients go from separation-induced credit damage to approved single-purchaser home loans within 3–6 months of a successful dispute. Subject to individual assessment of your complete financial position including income and deposit.

What if my ex-partner refuses to cooperate with the credit repair process? You can dispute entries on your own credit file without your ex-partner's involvement. Your file and their file are separate — removing a default from your file is something you can pursue independently.

Start With a Free Assessment

Our team reviews every default on your credit file — including those that arose during or after your separation — and tells you honestly what's removable.

Australian Credit Solutions — ASIC-licensed ACL 532003, No Win No Fee, 98% success rate, 4.9/5 from 976+ reviews, Award Winner 2022–2024.

Get My Free Assessment → 📞 0489 265 737 🛡️ ASIC Licensed ACL 532003 | ⭐ 4.9/5 from 976+ Reviews | 🏆 Award Winner 2022–2024

Australian Credit Solutions Pty Ltd holds Australian Credit Licence ACL 532003. Credit repair services are subject to individual assessment. Results may vary. This article provides general information only and does not constitute legal or financial advice.

Related reading: How to fix credit after divorce → | Default removal services → | Credit repair Australia →