New Delhi, May 27 -- Divorce is a financial change and also an emotional one, and it may affect a person's financial situation for several years to come. One of the most overlooked elements is, of course, the impact on a person's credit history from the financial decisions made during or after a separation.

In practice, absent the proper legal severance, loans, EMIs, and other financial relationships live on. And, if these financial relationships are not dealt with properly, these financial obligations can create missed payments, increase each party's debt-to-income ratios substantially, and ultimately lower both parties' credit scores.

Divorce is not a legitimate reason for banks or NBFCs to terminate a joint loan on the individual's b...