How to Protect Your Finances During Separation?
Immediately you realize that it is inevitable that you will separate from your marriage partner, there are certain steps which you must take in order to ensure that your finances are secured. If your separation is violent, you need to take the steps very quickly. Here are the tips on how to protect your finances during separation.
Protect the right to your home if you own one
The rights you have regarding the home that you live are determined by who is the real owner. Your rights to the property also depends on whether you have made any form of payments towards the cost of the home in terms of mortgage or other cost involved. In addition, your rights will also depend on whether there is any agreement that gives you an entitlement to part of the home.
In case your property is registered under both of you, it is necessary that you check how it is owned because your name may be in the registration documents, but you do not have any rights to its ownership. If both of you own it as joint tenants or joint owners, you may be required to change this form of ownership with a survivorship destination, to ensure that your ex partner does not have automatic rights to inherit your share in case you die.
This is a process that is a bit complicated, so you need to get advice from a highly reputable and experienced attorney specializing in house ownership rights. You can also seek advice from a solicitor who helps cohabiting couples who break up or an adviser from a charity that specializes in housing rights. If you want to contact a solicitor, you can check the guide we provide to you on the options you have for financial and legal advice on how to handle the separation.
Getting in touch with your mortgage provider
It is advisable that you consult with your mortgage provider in case the mortgage includes both of your names or you are the only one who is listed in the mortgage documents. If you are the only one who is included in the mortgage documents, you need to speak with your provider if you feel that you may go through challenges as you make the mortgage repayments.
In case of a joint mortgage, both of you have a liability for the full loan. If you fail to meet all requirements in your mortgage repayment, this could affect your credit ratings negatives making it hard for you to get other loans in the future. For more information regarding protection of your home ownership rights during separation, you can go through our guide.
Contacting your landlord if you live in a rental home
If your both of your names are listed on the tenancy agreement, one of you may come up with a plan on how to move on with the tenancy alone. In case only one of you is on the agreement, your rights to move on with the tenancy will be determined on the kind of tenancy agreement signed. Our guide provides you with more rights that you have during separation if you live in a rented property.
Consulting your bank, credit card and loan providers
In case of joint loans or accounts with your ex partner, you need to get in touch with your loan provider or bank to give information on what has happened. This is crucial if the separation is not amicable. For overdrafts or loans that you own together, both of you are liable for the full debts. It is important that you talk with your financial institution to change the way any joint account is created, so that the two of you can come up with an agreement on how the money will be withdrawn or how to freeze it. You need to note that in case you agree to freeze an account, both of you have also to agree to unfreeze it.
Second credit card on your account
If you own a credit card account and a second one for your partner, you will be the one who will be liable for their spending too. Thus, you should either ask your partner to return the card or ask your card company to block it.