- Here are the best ways to protect your finances after splitting from a partner
Going through a break up is a difficult period for anyone and it often comes with even trickier situations regarding your finances.
After getting into the habit of equally splitting bills, groceries, holidays and other purchases with your partner, the question of what to do with both your funds after a split is a prickly one to solve.
Research from Experian has revealed that 1 in 5 (19%) 18-35 year olds are ending relationships due to financial issues, which is likely impacted by 66.1% of the nation currently experiencing financial anxiety amid the ongoing cost of living crisis.
The cost of breaking up is also having wider consequences on people’s lives, as data reveals one in three couples are only staying together because they fear ‘not being able to afford to live alone’.
Read on below for five tips on how to protect your finances in the event of a break up.
Decide how to handle your rental property and bills
For those that are parting ways, almost half (47%) are unaware how to breakup financially with their former partners, which could have long term implications on their finances.
Experian’s first tip concerns how to handle the issues of shared property and bills, which you might split using a standing order or direct debit from a joint account.
The companys says you should take care of your tenancy agreement and utility accounts as soon as possible.
If you and your former partner were named on the agreement as tenants, you are both liable for rent until your agreement ends.
Therefore, discuss your intentions together before alerting the landlord and bringing your arrangement to an end, as well as settling final utility bills and closing accounts.
Close down your shared accounts and split your savings
More than half (52%) of people said they shared a savings account with their ex-partner, which they might use to have split finances when they were together.
Therefore, once you have split up, you should ensure that any leftover funds are equally split before rushing to close the account.
This means you will avoid any money getting lost or becoming inaccessible, as the account could be frozen by the bank through a lack of use.
Discuss any upcoming holidays
Experian’s research shows that on average, those who cancel or reschedule planned holidays lose more than £776.
With this figure in mind, it is essential to check your travel insurance policy as you might be covered for cancellations.
However, insurance companies may request proof for you to be able to make a claim, so be ready to have the necessary identification on hand.
Review and correct your credit report
If you had a joint account or took out a form of credit with your ex-partner, your credit reports will be connected, meaning they will appear as a financial link on it.
Avoid having their future financial decisions affect your credit application by asking all three credit reference agencies, including Experian, for a financial disassociation.
This information is not shared, making it important to update all three main credit reports. For them to do this, remember you need to have paid off and closed any joint accounts or credit agreements, or transfer them into one name.
Update your passwords
Make sure you update all passwords across subscription and online shopping sites. If your card is still registered on those websites, your ex could continue to buy items using your card details.
Similarly, if there are any in your ex-partner’s name which has your card details registered, log on to them and delete your registered payment information.
With 1 in 5 (19%) Brits breaking up citing financial issues, it is important to bear the above steps in mind so that you do not get caught short with any remaining funds.