But Cross warns that this process, which requires the borrower to submit a letter of explanation and the lender to customize its underwriting, doesn't always work.
"It's possible to get an exception but difficult," he says.
"People have a naive expectation toward court orders, like they're magic," says Barbara Stark, divorce lawyer and principal of Divorce Resolutions Resources. People have to learn to take responsibility for their own finances and their own lives.
The sooner they learn this, the more quickly they'll be able to limit the damage [to their credit rating]." David Cross, mortgage broker at Landmark Financial LLC agrees with Stark's assessment that court orders can't do much to protect a divorcing couple's credit rating.
So it's important to take the following steps to protect your score: It's been two years since Rachel's divorce and she is still repairing her credit score.
Jack's failure to pay the mortgage will stay on her credit report for up to seven years.
When she and her husband, Jack, split up, she followed her obligations under their divorce decree to the letter.
She was therefore shocked to find out that her mortgage application after divorce had been turned down because her husband had destroyed her credit rating.
Divorce is stressful and can sometimes lead to erratic financial behavior on the part of a spouse.An amendment to any contract requires the agreement of all parties, including the creditor.In Rachel's case, her ex-spouse stopped making mortgage payments and Rachel's credit score plummeted.It is therefore advisable for divorcing persons to take control of payments that affect their credit rating as soon as possible.Most divorcing couples believe that a divorce decree can relieve a spouse of a joint financial obligation. Court orders and divorce decrees can't save divorcing couples from financial peril if one or both spouses act irresponsibly.