Getting your finances back on track after separation
Estimated read time: 4 Minutes
When you've recently separated or divorced, facing the task of managing your finances on your own can feel daunting. Here are some steps for you to look into after separation or divorce.
1. There’s no time like the present
2. What are your goals?
3. Look at your budget
4. Look into the paperwork
It’s possible you’ll need to review your paperwork following a break up. Here are some common joint commitments that may need updating.
- Joint Accounts: Bank accounts, savings and transaction account statements. You may also need to address details of any investments and superannuation funds, tax records and business documents if you had a business with your ex-partner.
- Power and phone bills: Check that bills you need covered are still set up to be paid and that any automatic payments and debt repayments are made: Debts that are in joint names can still affect your credit reports.
- Insurance policies: Insurance, income protection, life, health, home and contents and car insurance.
- Credit and store card bills: Look into closing or freezing any joint credit cards or store cards.
- Property deeds or Rental agreements: Property deeds, mortgage papers or home loan details may need to be updated.
With rentals, if you were renting together and your name is on the lease, even if you have moved out, you could be liable for unpaid rent or property damage. - Wills and estate plans: After a relationship break-up you may need to update your will - particularly if you want to change any references to your previous partner.
Making a list and working your way through it could be a good place to start.
5. Live within your means
6. Plan for emergencies
An emergency fund that offers easily accessible cash along with having key insurance coverage can protect you and your loved ones against any unexpected events ahead. It could be helpful to have funds set aside to cover basic expenses like rent, utilities, food and transport in case of such emergencies.
As a general rule, aim to set aside enough funds to cover 2 to 3 months of living expenses and remember to include any loan repayments you may have.
7. Consider advice from an expert
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Enquire online or contact one of our Lending Specialists on 137 377 – we’re here to help.
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