Sorting out your finances after a relationship separation

In the days after a break-up, there are a few money matters to think about. We’ve made a list.

If you’ve recently been through a relationship break-up, money may be one of the last things on your mind. In the weeks after the separation, however, it’s important to work out how to untangle your finances from your ex-partner’s, so you can each have a fresh start.

We’ve put together a list of a few key matters to think about.

1. Closing joint accounts and opening individual accounts.

If you have a joint account through Police Bank, get in touch with us, as we can talk you through the process of closing it. Both parties need to sign off on the closure and the balance must sum to zero, which means credit-card debt needs to be paid off first.

It’s also important to make sure there’s a plan in place for direct debits, to ensure they’re not dishonored.

After you’ve closed your account, you can open an individual transaction account if you don’t already have one with us.

2. Coming up with a plan for the mortgage, rent and bills.

Whether you’re in a couple or living solo, housing payments are likely to be among the largest to come out of your bank account each month.

If you’ve been sharing the payments, it’s important to have a plan about what to do going forward. In some cases, one partner will stay in the same residence and take on the mortgage or rent, while the other moves out. In other cases, a property may be sold or vacated. These circumstances will determine how you proceed.

3. Getting expert advice.

Romantic separations can be complicated, particularly if your financial lives are heavily interwoven. Sometimes, you need help from a third party, such as:

• Legal advice – to work through the division of assets, updating your will and Power of Attorney and, in some cases, child-custody arrangements.
• Financial advice – to update your super and insurance and work out a new budget and overall strategy. The team at our partners Chelsea Wealth may be able to help.

This article is general advice only and does not take into account your objectives, financial situation and needs. Before acting on the information, you should consider whether it is right for you. Before making any decision to acquire any product or service you should obtain and consider the relevant TMDs and Terms & Conditions available on our website or by calling 13 17 28