March, 2014

Mar 14

Break ups that hit your wallet as well as your heart

robin--a It is only March but there have already been some high profile celebrity breakups this year.  Hilary Duff and her husband have called it quits and despite some desperate pleas from Robin Thicke it seems as though his marriage to Paula Patton is over too.  However, splitting up is more than just a matter of nursing a broken heart, it can cost both parties an absolute fortune.  However, it doesn’t have to…….

New research out from Experian CreditExpert has said that a massive 1 in 5 people have ended up with a lower credit rating following a breakup.  The simple reason is that whilst you might have made a public declaration to your friends and family about your split, you haven’t made it official financially.  In fact, just 3% of people have ever filed a note of disassociation.  A financial disassociation is basically a credit divorce but it lets lenders know that a couple shouldn’t be viewed as a couple anymore and that all financial arrangements should be treated individually again.

In fact, I doubt any of you have even heard of one let alone used one, but they COULD be your saviour in the event of a breakup, especially if it all ends a bit messily.  In fact, thousands of people in the UK could still be financially linked to former partners without even realising it…….potentially costing you money as your credit worthiness might be decided not just on your own ability to manage money, but how good your ex-partner is too.

CreditExpert say that a fifth of people have they found it more difficult to get a mortgage a result of an ex partner’s poor credit rating and 22% stated that they have been unable to get a loan for the same reason and nearly a quarter (24%) found getting a credit card more difficult or expensive.  Quite a costly mistake!

5 ways to stay in the black after a breakup

Keep things amicable

If there is any way to keep things friendly, it will save you a fortune! As soon as things get a bit unpleasant and solicitors and mediators are involved, you’ll be wasting your hard earned cash paying their fees.  Solicitors can cost between £3,000 and £10,000 per person!

Ensure bills are still paid

As soon as the decision is made to separate, you need to make sure that all of your short-term financial matters are taken care of.  It can be easy to forget about direct debits and standing orders but missed payments can be bad news for your future borrowing.

Splitting your assets

Your bank can offer advice on how to stop your ex-partner clearing out the joint account or running up new debts. Be warned that freezing the account will affect both of you so think about that option carefully.

you want to buy your partner out of your house and keep it yourself, your lender will want to check whether you are able to make the payments each month before they transfer the mortgage. However, you may be able to remortgage to a better deal to cut down those monthly payments.  Often the easiest option is to sell the property and split the proceeds.

Your Will

It is highly likely that if you have a Will, your main beneficiary was your spouse. Unless you update your Will after a divorce, it is still possible that all of your money would go to your ex-partner after your death. Not ideal!

Check your own credit rating

Checking your own credit rating is FREE and EASY.  CreditExpert offer a free trial and it means you can have access to your file and check for any mistakes and have them corrected BEFORE you get penalised.  Read my guide at to find out more

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