While breakups are hard, the effects on finances can make the whole ordeal even harder. In the UK alone, around 500,000 people face tough financial times after a split. Housing, divorce costs, and living expenses are just some of the things to consider when the relationship dissolves. Knowing that there might be financial difficulties after the split can make it hard to remain civil, especially if you’re getting the rougher end of the deal. Discover ways to remain on good terms even when finances aren’t looking great.
Even if the other party is the cause of the split, it’s important to keep emotions out of the financial side of things. Debts and costs incurred together should be split evenly.
While it may be tough, a fair process might prove helpful down the road especially if it’s necessary to still remain in contact. A simple way to share items is for each person to keep the items they purchased. Things might be a little harder when the items were bought by both of you, however.
If this process seems hard or there seems to be resistance from the other person, it might help to get support from an expert to ensure that the process remains fair.
One of the hardest obstacles to overcome during a breakup is finding suitable living arrangements for both of you, especially if finances were the reason for the breakup. Mortgages and rentals are quite tricky, especially if both people signed for them. The landlord might not be happy to only have one tenant remaining on the lease, and mortgages have rules regarding the transfer of property as well.
For many, this can be a stressful time as they may be forced to look for a housemate or sell their family home. If the situation allows, assist your ex to look for a solution that will suit everyone, especially if there are children involved. It’s also important to remain reasonable in terms of allowing the other party enough time to look for suitable accommodation if you’re to remain in the property.
It’s not only unfair to the other party if you decide to remain ignorant of all the financial obligations, but also foolish if your credit rating or good standing will be affected. When it’s time to call the relationship off, you will need to get up to speed with all the bills. This means taking ownership and paying your share on time. You may need to take some time to discuss joint accounts and assets that need to be shared until a resolution can be found. It’s also important to keep financial records of all transactions and to document all agreements of payments should you need them further down the line.
If you have any questions, or would like some support, please book a free 15-minute call with one of our experts here.