By: Finance Coach Jeannie Dougherty
Going through a breakup requires a lot of mental and emotional strength. You might have days where it’s harder to keep moving or find yourself falling into old habits. That’s okay; you are only human.
The last thing you probably want to do during a breakup, divorce or separation from your partner is figure out all the financial stuff. Everyone’s situation is different, but keeping track of your money and ensuring things are fair is essential so there is not as much bad blood between you and your ex. Here are a few things you can do to solve your finances when you enter the business of breaking up:
Talk with Your Ex
This one might sting a bit, but having an open and honest conversation with your ex is essential. Talk about your financial situation, assets/property, and next steps. You may not envision yourself doing this, but you both need to be clear on who is taking what, what things belong to one another, and who will pay for specific things. A conversation like this will minimize future confusion and make this transition a little more peaceful.
For example, say you both lived together. Who will be keeping the house/apartment? Who will move? Will you split moving expenses, to be fair? What about the furniture you both bought together, who gets that? These questions must be answered before any fights or spontaneous decisions are made. A partnership should be 50/50, and just because you both broke up does not mean the partnership is done within a split second. Ensuring that a financial breakup happens on fairgrounds will prevent fights in the future.
Separate Bank Accounts
Once you agree on all your belongings, split up your bank accounts. This should be at the top of your list so that each person’s money is theirs. Couples often have a joint bank account because it’s easier and convenient for spending when you two are together, but once that ends, it’s necessary to make that separation. If you are ending a marriage, seeking legal advice to ensure all your ducks are in a row could be worth it.
Separating bank accounts also means looking into your credit history. Getting a credit card report will help you establish which loans you must pay and keep things in order. The main thing with navigating a financial breakup is ensuring things are balanced. You should make an equal payment plan if you both agree to a loan. Figuring out and dividing your finances can be stressful, but it’s the first step to moving on.
Budget Ahead
As you end your relationship and things get settled financially, you have to focus on taking care of yourself. You might have to redraw your budget and financial boundaries as you navigate this new stage of your life. Your spending habits might change because you do not have the safety of a partner to back you up. That’s okay. Life is full of trial and error, and your finances are a part of that.
Seeking help from a financial advisor can give you the confidence you need to move forward and make wise spending decisions. Being on your own is not bad, but you have to work to find out what works for you. Instead of relying on a partner to support you financially, you can depend on yourself.
Disclaimer: This content is for informational purposes only and is not intended as financial advice, nor does it replace professional financial advice, investment advice, or any other type of advice. You should seek the advice of a qualified financial advisor or other professional before making any financial decisions.
Published by: Martin De Juan
