When you’re in a relationship, money may be the last thing on your mind.
But there may be financial ties that need to be broken.
Pearl Akintola, consumer finance expert at credit information company, says, “When you go through a breakup checklist, blocking your ex on social media is always at the top of the list, but figuring out how to cut financial ties is usually at or near the bottom. refused.”
She explains, “It’s important that you distance yourself financially from your ex.
“If you don’t take the necessary steps, they will remain tied to your credit report, so their future expenses and debts can affect your financial ability.”
When going through a divorce checklist, blocking exes from social media is always at the top of the list, but figuring out how to cut financial ties is usually at the bottom.
Pearl Akintola, Practitioner
Here’s Akintola’s guide to handling the various financial stages of divorce:
1. Initial distribution
Akintola says that while friends and family can “give it a chance to cry,” people may want to seek confidential help with their finances elsewhere, which may include professional guidance.
He adds: “Services such as (Government-backed body) MoneyHelper can help you understand your options and the next steps you need to take – support you throughout the process.”
If you are renting together, it is important to pay attention to the tenancy agreement.
Akintola says, “If you live with your ex-husband and you are both named as tenants in the agreement, you are both responsible for the rent until your agreement ends.
“Therefore, contact your landlord or estate agent and let them know that you intend to move. Discuss what this means for your lease and how you can end your liability under it.”
It is also important to take care of the accounts in any household.
Akintola advises: “Before you move, contact your service providers for any utility bills in your name and update them on your plans. Don’t forget to arrange how to pay the outstanding balance on any recent bills.
Along with promissory notes, it’s important to divide any savings and discuss how money will be distributed fairly to cover bills, he adds.
Some people may still have holidays booked with exes.
If you have a travel insurance policy, Akintola recommends checking what it says about cancellations.
He added: “If you still want to go on the trip, ask a friend to go with you! Contact the travel company to see if you can change the name on the booking – there may be a small fee.”
Some people continue to share responsibility for their pets after a divorce.
Akintola says, “Having pets can be expensive, so discuss how you’ll cover expenses like an unexpected vet bill.”
2. Make financial changes
After a breakup, it’s natural to want a fresh start with new opportunities.
But, before saying goodbye to your ex-husband, Akintola said, “Look after your credit score because it might be the last thing that connects you to them.
“If you have a joint account or take out a type of credit with them, such as a loan, your credit report will be linked to theirs and they will appear as a financial reference on your report.”
It asks the credit reference agencies to remove them from your report, adding: “To do this, you must pay off any joint accounts and credit agreements, or switch them to a single name.”
Don’t forget to reset the passwords you shared with your ex.
Akintola says, “Now that you’re on Netflix and with someone else, make sure you update your password. This also applies to online shopping sites.
He adds: “If your ex-partner has someone with your card details on file, go to them and delete your payment information on file.”
While you are making changes, it may also be a good time for financial changes.
Akintola added: “Review and organize your finances to complete your financial situation.
“Find out how you can afford your new lease, avoid unnecessary subscriptions and budget for the latest utility bills.
“Then you can invest in a cool outfit or dye your hair for revenge.”
3. Shop for a new account
Akintola suggests, “Find better financial options like a better savings account or a cheaper credit card.
“Now that you’ve ditched your joint savings account, find one that’s right for you.
“When you decide to open your savings account, shop around before you open an account. Consider how much interest you’re getting and whether it’s fixed or market-based.”
Easy-access savings accounts are handy for those “rainy day” funds needed for emergencies.
But for long-term savings goals like a home, you can earn higher rates through a fixed-term savings account or Isa, says Akintola.
And if you’re dating again, Akintola says it’s important to be vigilant when using dating apps and websites.
He says: “Remember not to share personal details that could be used intentionally, such as your date of birth or private address. Fraudsters can use this information to access your bank account.”
