Divorce can feel like stepping into uncharted financial territory.
While marital status itself doesn’t directly show up on your credit report, the ripple effects of dissolving a marriage, especially where joint accounts and debt are involved, can impact your credit score in significant, often surprising ways.
Divorce and Your Credit Profile
Your marital status isn’t part of your credit profile; being divorced doesn’t, on its own, affect your rating. The real risk lies in what remains attached - especially shared obligations that persist unless actively resolved.
If you and your spouse had joint credit cards, loans, or overdrafts, you’re both legally responsible for those accounts until they’re closed or refinanced. A divorce decree doesn’t override this. If one party defaults, both credit profiles will reflect the damage.
Joint Accounts: Shared Responsibility Until Closed
In South Africa, joint loans, mortgages, or retail accounts remain in both names unless you act to separate them. Even if your divorce settlement states that one person must take over repayment, lenders are not bound by this unless the account is legally refinanced or closed.
For example, if your ex is meant to pay the joint credit card but doesn’t, the missed payment still reflects on your record. This is why financial uncoupling is just as important as the legal divorce itself.
How South African Marital Law Affects Debt
The way debts are divided during divorce depends on the marital regime:
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In Community of Property: All debts (and assets) are shared equally, regardless of who incurred them.
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Out of Community of Property with Accrual: Each spouse keeps their own debts, except where they benefited both parties.
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Out of Community of Property without Accrual: Each spouse is responsible only for their own financial obligations.
Your settlement agreement should clearly state how debts will be divided, but remember: unless your name is legally removed from the account, the bank can still hold you responsible.
Steps to Separate Joint Finances
The best way to protect your credit after divorce is to act quickly to separate joint accounts and responsibilities. Some practical steps include:
Identify all joint accounts. List every loan, credit card, store account, and service contract you share.
Notify creditors and service providers. Update your contact details so you don’t miss payment reminders. This includes banks, insurers, medical aids, and utility companies.
Close or freeze joint accounts. If possible, close joint credit cards and accounts immediately. Where balances remain, freeze the account until it’s paid off to prevent new spending.
Open your own account. Establish a bank account in your name alone so your salary and living expenses are separate. It is generally advised to separate accounts early to avoid complications later.
Change passwords and logins. This applies to online banking, store accounts, and even rewards programmes.
Update beneficiaries. Remember to change life insurance, pension fund, and medical aid beneficiaries. Divorce does not automatically remove your ex from these policies, so it would need to be done manually should you want to.
Managing Debt After Divorce
Debt is one of the biggest financial stress points after divorce. If you’re still linked to your ex through credit, your score can suffer if they miss payments. To manage this risk:
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Refinance or transfer debt. If one partner is keeping the house or car, refinance the loan so the other’s name is removed.
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Pay off and close accounts where possible. The fewer joint liabilities left, the safer your score.
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Consider consolidation. A personal loan to settle multiple smaller debts can simplify repayments.
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Stick to a repayment plan. Even if your divorce order says a debt isn’t yours, it may still appear on your record until settled.
Building Credit on a Single Income
Divorce often means adjusting to a single-income lifestyle. This can feel daunting, but it’s also an opportunity to build a strong individual credit profile.
Start by applying for credit in your own name—this could be something like an RCS Store Card, or small personal loan. Pay it on time, every time. Keep your credit utilisation at a fair level, as this shows lenders you manage debt responsibly.
Check your credit report regularly to ensure all joint accounts have been closed and no new accounts have been opened without your knowledge. You can get your report from TransUnion, Experian South Africa, or do it for free with RCS.
It may take time to rebuild, but consistent payments and responsible use of credit will steadily strengthen your score.
Divorce is not just an emotional challenge - it is also a financial one. While the act of divorcing does not automatically damage your credit, the lingering ties of joint accounts and shared debts can. By separating finances quickly, managing debt responsibly, and steadily building independent credit, you can protect yourself and your financial future.
Over time, it will become clearer that divorce is about more than ending a marriage - it’s about starting fresh, and that includes your credit record.
