So, you thought that you were done being hosed over by your ex when the judge ordered them to pay the bad credit auto loan that you co-signed with them. Unfortunately, you are not clear yet.
Lenders consider a divorce decree to be an ”outside agreement”. That means that, despite the decree, your credit score will be affected as well as your ex-spouses if they do not keep the loan on good terms. Now you are thinking: ”Great, now I am just stuck with this loan.” That may not be true.
No one here is an attorney, but in most states you can request that all loans be assigned a responsible party and that each party must refinance all loans into their individual name prior to finalization of the divorce. That is the only way to protect your FICO.
Divorce can be one of the hardest hits that your credit score will take. Protect yourself by getting your spouse’s second chance auto loans out of your name prior the the final divorce decree.