8 Money Tips For After Divorce Or Separation

Going through a divorce or separation can be a particularly tough time on anyone both physically and emotionally, but it can also affect you financially as well. Finances can be the beginning of arguments when you are together, and they don’t loosen up after you separate. Going from a partnership of two people able to pay bills, mortgages and contribute financially, to going it alone can put a lot of strain on both your bank balance and savings.

Credit cards are not always the answer
If your partner moves out and the payment of rent/ mortgage alongside bills falls on you single handily then you might find that you are reaching for your credit card more often than you normally would. Taking out a loan to tide you over for your expenses can be a better bet than reaching for your credit card all the time and having a heart attack when your bill comes in at the end of the month.

Have a discussion with your ex if you had a joint credit card
Joint credit cards can prove tricky especially if you and your partner part ways. Logistically you are going to need to sit down and talk through this expense to work out who owes what. Once the balance is sorted out there are two options; cut up the cards and cancel the account, or take one person off the card and put it in the others name. Whichever option you choose ensure it is something you’ve both talked through.

Bills also need discussing: You shouldn’t have to pay it all
If your ex has moved out and you still live in the property you used to share, then bills are going to need to be discussed. Work out how often your bills are paid i.e. do you pay for your electricity every quarter and your council tax monthly via direct debit. You will need to work out the proportion of each bill that will need paying back to you before you start again. You may find it useful to take out a small loan in order to give you the cash to pay off the first few months while the pair of you work out who owes what, this will give you the peace of mind that you won’t have any of your services cut off due to non-payment.

You may be entitled to cheaper council tax
If you are going from living with someone to living on your own then bare in mind that you could be entitled to single person occupancy council tax. By applying for this from the moment you live on your own you could be paying 25% less each month, and every little helps!

See what other benefits you can get
When you separate with someone you might find that you are now entitled to benefits such as tax credits and/ or working tax credits. You will also find that living with one less person will decrease the amount you pay in electricity and water so contact your providers who may be able to lower your monthly payments.

Start building up your pension funds
You and your partner may have worked out how much money you’d need to live on when you both retired and chose your pension payments to reflect this. After a divorce or separation it’s a wise idea to increase your pension payments as you may find later in life you need more money to live on.

Loans can help if you need money for legal costs
Sadly not all separations are clean cut, especially when children are involved. If you end up needing to go to court or taking things further with a solicitor then the costs can mount up. Think about taking out a loan to make these payments in one go and then you can repay it back in smaller amounts at a later date.

Open a new bank account if you had a joint account
If you and your partner used to share a bank account then aid in your fresh start by opening a new account. You can get your salary, any benefits, and other payments made into this account to allow you to budget and spend accordingly.