SPLITTING from a partner can put you on an emotional rollercoaster and separating assets can be one of the hardest parts of all.
No matter who was in the driver’s seat when it came to managing the household finances, both need to take action to ensure an amicable solution.
Here are some first steps to ensure you are not left in the lurch financially.
“Open up a separate bank account straight away and get your pay paid into it,’’ says
Crown Money Management’s Scott Parry who insists communication is key when sorting out money.
“Come to an agreement on all your loan repayments and work out who has to pay what.
“Make sure that’s stuck to because if you default it will leave the other partner with a bad credit mark if their name is on the loan.”
Parry suggests penning out the agreements. Although they are not legally binding it will help you both understand where you stand.
Come to an agreement on all your loan repayments and work out who has to pay what. Source: News Limited
MoneySmart’s senior manager of financial literacy Suzan Campbell says there is a lot to work out but try to take one step at a time.
“Sort out all the debits and credits in your accounts and direct debit payments, also pay any due amounts,’’ she says.
“If you have a mortgage sort that out and look at the repayments and work out a plan for how to split the repayments between the two of you.
“If you have a home loan redraw facility you should put a stop on it so there’s no extra debt added to the overall balance which will make it more difficult later.”
If you’re renting check whose names are on the lease and determine who is going to take it over in full — change the lease to reflect that.
Once this is done it is advisable to contact a solicitor to sort out property held in join names and also look to update your will.
