Cost of Loving: Five ways to protect your finances after a messy break-up
Going through a divorce is a difficult time for everyone and often brings even more difficult situations regarding your finances.
After you’ve gotten into the habit of splitting bills, groceries, vacations, and other purchases equally with your partner, the question of what to do with both of your funds after a split is a tough question to resolve.
Research of Experian has revealed that 1 in 5 (19%) 18-35 year olds are ending relationships due to financial problems, which is likely influenced by 66.1% of the nation currently experiencing financial worries amid the ongoing cost of living crisis.
The costs of breaking up also have a bigger impact on people’s lives, with data showing that one in three couples only stay together because they fear being ‘unable to live alone’.
Read below for five tips on how to protect your finances in the event of a divorce.
Research from Experian has found that 1 in 5 (19%) 18-35 year olds are ending relationships due to financial problems, which is likely influenced by the fact that 66.1% of the nation are currently experiencing financial worries amid the ongoing crisis in the cost of living (File image )
Decide how you will handle your rental property and bills
Of those separating, almost half (47%) don’t know how to financially part ways with their former partners, which could have long-term consequences for their finances.
Experian’s first tip is about how to deal with the issues of shared ownership and bills, which you can split via a standing order or direct debit from a joint account.
The company says you should take care of your lease and utility bills as soon as possible.
If you and your ex-partner are listed as tenants on the agreement, you are both obliged to pay rent until the end of your agreement.
Therefore, discuss your intentions together before you warn the landlord and terminate your agreement, as well as settle the final energy bills and close the accounts.
Close your shared accounts and share your savings
More than half (52%) of people say they have shared a savings account with their ex-partner, which they could use to split finances if they were together.
Therefore, after you break up, you should make sure that any remaining money is divided equally before rushing to close the account.
This prevents money from being lost or becoming inaccessible, because the account can be frozen by the bank due to lack of use.
Discuss any upcoming holidays
Experian’s research shows that those who cancel or reschedule planned holidays lose more than £776 on average.
![Cost of Loving: Five ways to protect your finances after a messy break-up 2 The costs of breaking up are also having a bigger impact on people's lives, with data showing that one in three couples only stay together because they fear being 'unable to live alone'.](https://nybreaking.com/wp-content/uploads/2024/03/1710046617_140_Cost-of-Loving-Five-ways-to-protect-your-finances-after.jpg)
The costs of breaking up are also having a bigger impact on people’s lives, with data showing that one in three couples only stay together because they fear being ‘unable to live alone’.
With this figure in mind, it is essential to check your travel insurance policy as you may be covered for cancellations.
However, insurance companies may request proof so that you can make a claim. So make sure you have the necessary identification at hand.
Check and correct your credit report
If you had a joint account with your ex-partner or took out a form of credit, your credit reports will be linked together and appear as a financial link.
Prevent their future financial decisions from affecting your credit application by asking all three credit reporting agencies, including Experian, for financial dissociation.
This information is not shared, making it important to update all three major credit reports. To do this, you must bear in mind that you must have paid off and concluded any joint accounts or credit agreements, or transferred them to one name.
Update your passwords
Be sure to update all passwords on subscription and online shopping sites. If your card is still registered on those websites, your ex can continue to purchase items using your card information.
If there is someone in your ex-partner’s name with your card details registered, please log in and delete your registered payment details.
With 1 in 5 (19%) Brits splitting up due to financial problems, it’s important to keep the above steps in mind so you don’t end up short on the remaining money.