Break ups are tough on everyone involved, there is no denying that. But add in the need to deal with financial decisions and separation, and it can be an added level of complexity that leads to unnecessary arguments and hurt feelings. Avoid these fights and losing out financially with these handy tips – though hopefully you never need them!
Cancel your joint accounts
Protect yourself and your finances by taking your money out of joint accounts and cancelling credit cards that are in your joint names. This protects you financially should your ex try to do something they would later regret. Remember to only take what is yours and be fair in dividing any joint income.
Update your account details with all employers so that future wages go into an account that only you have access to.
Make copies of all financial documents
It is important that you have a copy of all important financial documents in case you have to legally prove how much you are worth financially. This includes all finances you have individually as well as those held jointly with your ex.
Prepare your future finances
Once you better understand your financial position you can create a budget based on your sole income. It can be a big adjustment to reshape your lifestyle to a single income. Review your income and expenses to identify where you need to alter your spending habits.
Update legal bequests
Often when setting up your will, super and insurance you direct funds in the event of your death to your partner. A lot of the time this will no longer be the best place for this money to go after a separation.
Update these accounts and documents as needed to direct funds where you wish for them to go. Often these products are out of sight and out of mind, going unchanged for years or until it is too late.
Consult a lawyer
Even if things are likely to be amicable, divorce is a complex legal process that can be difficult to navigate without professional help. Dividing assets and custody can get tricky and heated. Consulting a family lawyer means that both parties get what is theirs with minimal damage to the friendship.
If you have been left in a financial tight spot after separation, get professional debt assistance from Life After Debt. Contact us on 1300 237 669.