More than a third (39%) of Britons said they found it difficult to separate their finances after separating from their partner – so a group of money experts shared their advice.
The term “divorce” has seen an 80% increase in Google searches year over year and searches for “joint account after divorce” have increased by 68%, with the past 17 months clearly testing the relationships of people, some up to the breaking point.
This is according to the debt management company, Lowell, which looked at UK experiences and attitudes towards common finance.
They found that half (47%) of Britons who currently have a joint bank account feel they haven’t received the right advice or the right advice on what would happen to their account if they were to go their separate ways.
(Image: Getty Images / iStockphoto)
The end of a relationship or the breakdown of a marriage is often one of the most stressful times in anyone’s life, and disputes can have a lasting impact on families and those involved.
Almost half (46%) of Britons said agreeing on what to do with their marital home and unpaid mortgage payments was one of the most stressful parts of their separation.
The study found that four in ten people (39%) found it very difficult to separate their finances, and 58% believe their previous experiences will dissuade them from having a joint account again in the future.
There are a number of ways to keep up to date with the latest news on Daily Record savings and benefits.
You can join the conversation on our Money Saving Scotland Facebook group for money saving tips, benefit news, consumer help and advice, and the latest shopping deals.
Sign up for our Record Money newsletter to get our best stories delivered straight to your inbox every Tuesday and Friday. You can register either by entering your email address in the registration box above on this page, or by clicking here.
You can also follow our Twitter account @Recordmoney_ for regular updates here.
Separation when a couple shares common finances can also lead to debt, as some may find themselves having to repay the amounts accumulated by their partner.
This is something nearly half of Britons (45%) found to be one of the most stressful experiences in their finance division.
The fact that their own credit score is affected by their partner’s behavior was identified as the biggest stress for 31% of those surveyed.
Additionally, an additional 30% said agreeing on how to allocate savings, investments or other funds was the most stressful part.
How to manage common finances
John Pears, Managing Director of Lowell, offers his advice to all couples with common finances going through a separation.
“Separations are always difficult, and if you have finances that are combined and intertwined, things can get even trickier. A lot of people don’t know that when you break up you are both equally responsible for any joint debt, even if you didn’t spend the money.
To make sure things go as smoothly as they can during a separation, here are some steps John suggested:
- If you can, communicate clearly with your partner what will happen to your finances. Talking about things and coming to a mutual agreement can benefit an already difficult situation, however, of course, this is not always possible.
- Make sure you let your bank know about your separation as soon as possible so they can block the account.
- If things are acrimonious, move your salary and regular income to another account. This will help keep things separate from your partner when you receive future payments.
- Establish your new budget. After a separation, your income and expenses will be significantly different from before. You need to prepare for it by setting a new budget, so you understand your financial situation and what you can spend.
- Know that you are not alone. As the research has pointed out, many Brits go through financial separations and while it is not easy, there are plenty of people and organizations out there to help – so don’t be afraid to reach out, but be sure to do it. that you get your advice from reliable sources.
Get the latest news on savings and benefits straight to your inbox. Sign up for our weekly Money newsletterhere.
