A divorce can have a devastating impact on your credit score if you are not careful. When you're working to build a new, independent financial life, protecting your credit is absolutely essential for securing a new mortgage, a car loan, or even just a credit card in your own name.

The biggest threat to your credit during a divorce is joint debt.

If your name is on a joint mortgage, car loan, or credit card with your spouse, you are both 100% legally responsible for that debt in the eyes of the creditor. It doesn't matter if your divorce decree says your spouse is responsible for making the payments. If they miss a payment, the creditor can report that delinquency on your credit report, and your score will suffer.

Here are two key steps to protect yourself when negotiating a resolution in your case or when you make a plea to the judge for your divorce:

1. Close Joint Credit Card Accounts: Work with your spouse to pay off and close all joint revolving credit accounts. If you can't pay them off, consider freezing the accounts so no new charges can be made.

2. Refinance Joint Loans: For larger debts like a mortgage or car loan, the best solution is usually for the person keeping the asset to refinance the loan in their own name, which removes the other person's name from the debt. Your settlement agreement should include a specific deadline for this to happen.

Proactively addressing joint debt is the single most important thing you can do to protect your credit.

To get more strategies for building a strong financial future, download our free guide: Financial Clarity & Control: The Professional's Guide to a Secure Financial Future After Divorce.