All's fair in love and war – true, but the same goes for love and money. When you decide to share your life with someone, that will inevitably involve sharing your money with them too. However, if the worst should happen and you break up, are your finances safe? A breakup can be personally devastating and you need to look after your mental and physical health first. Then it is time to make sure you're financially okay when moving forward.
Australian Security and Investments Commission's released a financial checklist and guide about keeping your money secure should anything happen with your relationship.
First things first – documents
Collect all the documents you may need should you separate. It is important to gather passports, marriage certificates, invoices, bank statements and any relevant information so that you have a paper trial of your life. Breaking up can be very amicable but it is important that you try and get the necessary documents as soon as possible. . Also keep in mind that you should close any joint saving accounts you have together and open up a personal savings account.
The first thing you need to do is make sure your lender knows that you and your partner have separated
Shared debt.
Do you share car loans, a home loan, a business? The first thing you need to do is make sure your lender knows that you and your partner have separated. If you have signed and are both responsible for debt then making sure it is paid is top priority.
If you can't agree on payments between the two of you, seek advice from a financial expert. They will guide you through the right process and help you to make sure debts are paid on time. Also check any house hold expenses that are in your name. Are you responsible for the electricity, water, TV, internet bills? If you are, make sure your financial advisor is aware of it.
Child care and support
If you have kids, they have to be the main focus before anything else. Both of you should be able to come up with a financial plan for your kid's needs. However, if you cannot come to an understanding then you need to seek legal advice and contact The Department of Human Services.
Next on the list is to contact your child's school and tell them you are separating or divorcing. The school needs to be aware of the situation because they need to know if the school fees will be paid and who is the primary caregiver of the child.
Talk to the helpful team at Advantage Finance for great financial advice during a difficult time.
