How To Sort Your Finances After A Break Up

 

Photo Source: Micheile Henderson on Unsplash

There’s a lot to deal with when a relationship ends, especially if property and children are involved. There’s a good chance that your finances are inextricably linked with those of your former partner and it can be very difficult to separate these out and get yourself back on an even footing when it comes to your financial future.

Of course, the process is different for everyone. A lot depends on the circumstances of your break up, whether children are involved and how amicable the split was. Are you working together to make the separation as easy as possible, or is there a family law restraining order involved? 

Also, if one person was financially dependent on the other, it can make things difficult. 

Deciding When And How To Separate Your Finances

Your financial obligations to each other don’t stop the moment you decide your relationship is over. If you can, sit down at talking about what needs to be paid for, who currently pays for what, and when this will change (if at all). For example, you may both pay the mortgage and it makes sense to keep doing this while you both still live in the home. However, once a person moves home and starts living somewhere else, with a second mortgage or rent to pay, then this is a good time for another arrangement to take place. 

Child Support

There are two routes you can take with child support. You can have an informal agreement about the contributions that each parent will make, or you can seek a formal legal judgment. 

This type of judgment takes into account which parent the child or children will be living with at a primary residence and the income and essential expenditure of the other parent. The court will then usually award a fixed sum per month until they are an adult or the living situation changes. 

State Laws On Divorce / Dissolution

Depending on where you were married, there may different laws regarding spousal support. If this is something you want to pursue, then you will need to consult a legal specialist. 

Even if the divorce is amicable, it still helps to have a legal agreement stating what you’ve agreed to so that there are no misunderstandings down the line. 

Get Financial Advice 

No matter your current financial state, it’s a good idea to get some professional advice about your future. After all, your world view has probably shifted and was before you were planning a financial future with two incomes/pensions, etc, this has now changed. Even if you do get married again, it’s good to know where your own personal finances stand. 

They’ll be able to help you with advice on pensions, taxes, and insurance policies.

Takeaways

Breakups are never easy, either in emotional or practical terms. It can be difficult to wrap your head around the financial aspects, especially if you’ve been relying on someone else financially (or vice versa). The best thing you can do is try and keep calm and work things out in a mature way, ensuring that that you take the right advice every step of the way.