Separating or divorcing

Starting out on your own can feel daunting, especially if you have been in a relationship for a long time and your partner took charge of the finances. But armed with a bit of information about what to do, you'll soon be able to find your financial feet.

Living apart means the income that supported one household will now have to stretch to support two. So check that you haven't missed out on any income due to you as a result of your change in circumstances such as child benefits or tax credits.

If you've decided to split, but both remain responsible for supporting your children financially you have two choices for arranging financial support. You can negotiate your own settlement, called a private agreement, or you can ask the Child Support Agency (CSA) to set one up for you. If a private agreement does not work, you can still ask the CSA to make an arrangement for you.

If you have a joint mortgage or any other joint debts, you are both responsible for the amounts outstanding. This is also the case if you have an overdraft on your joint account, even if it was your partner, not you, who ran up the debt and even if it has happened since you split up.

That's why it's important you contact your bank to get any joint accounts frozen and set up a new account in your single name. If you have a joint credit card, contact the credit card company to get the account frozen. Tell your mortgage provider that you are separating.

You may want to review and change your will. If you have not made a will before, it's a good idea to make one now, especially if you have children. As well as thinking about their financial security, you can also think about who you would want them to live with if you were to die.

Top tips

  • Many people find out after a divorce that they need to build their personal credit history. Start by ordering your credit report and score to see where you stand. Credit monitoring programs provide helpful information on how to build a better credit history. Start slowly and work to improve your credit report over time for the best results.
  • Find out how child maintenance works and how much you'll get.
  • Separation does not affect the terms of any previous will you made, so if your partner was due to inherit anything from you, he or she still would.
  • Keep your pension scheme informed of any changes in your personal circumstances. This can be done by completing an expression of wish form and checking that it still reflects your wishes.
  • If you were going to rely on your partner's pension in retirement you might need to think about reviewing your pension situation.
  • If you are now the only adult in your house, you may qualify for a reduction in your council tax bill.

 

 

© Copyright Daily Mail & General Trust plc