Ending your marriage and refreshing your finances

One of the potentially worrying aspects of divorce centres on finances. If you are considering ending your marriage, it’s a good idea to relook at your financial situation. So that you are clear what is going in and out of your accounts or any joint accounts you share with your partner. Time spent on this will help you prepare for the divorce process with a clear mind. You begin to make changes like cancelling direct debits or transferring funds between accounts.

Financial Planning after divorceEvery household has similar bills but many have varied ways of dealing with them. Maybe you both have a joint account, where all the direct debits get paid and you rarely look at it. You know the income going in, is enough to cover it. Or, you may have some household bills coming out of your account and the rest coming out of your partner’s. It is worthwhile creating a document to detail all the ins and outs of all financial accounts you have and share with your partner.

Deciding on Changes

You can start to decide what changes are likely to happen after the divorce, once you or your partner has moved out. For example, make a note of whose name the utilities are in and who is responsible for paying the bill. Also consider, what will happen to your credit score if bills are not paid by the person responsible. As you review the figures, you may find that you will need to bring in a lodger to rent the spare room, in order to bring in extra income. Perhaps your partner will take the car, so this is no longer an expense for you. However, this may leave you with a free parking space and this can be sought after by people working nearby. Therefore, take a look at renting the space for people to use daily, particularly if you live in a city centre, where parking is costly for commuters.

Some couples will put all their groceries and online or high street shopping on the credit card. Then when the bill comes in every month, pay it off in full. This works well but it’s important to look ahead to see future bills. Pre-divorce, speak to your partner about paying off the final bill for a credit card. And then discuss who will use it following your separation.

Holidays

With Summer holidays coming up soon, everyone’s finances are likely to take their toll without effective planning. This is often another dilemma for any couple to discuss what their budget is for holidays. As you look beyond your divorce, see how much you are likely to spend at this time of year. Perhaps consider holidaying with friends or cheaper holiday destinations.

Websites like Money Saving Expert are ideal for finding the best deals at the moment and this can be especially useful if you want to switch your accounts or set up new ones in your name only. Divorce is also a good opportunity to review any insurance products you have, particularly life cover and home insurance.

For further information or to have a confidential discussion about your situation please telephone

0800 177 7702

Ending your marriage and refreshing your finances was last modified: June 14th, 2018 by John Fuller
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