If you are separating from your spouse, you may feel overwhelmed by the worries of money and organising your financial stuff during a divorce. You are not alone in thinking “Where so I start?”
Running a house is a bit like running a business. Money in has to be more than or at least as much as money out. We don’t often quote Dickens ,but as Mr Micawber said in David Copperfield; “Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds nought and six, result misery.”
- You will need to start the long process of separating your finances and you will need a bank account in your sole name.
- Come to an agreement with your Ex about any joint accounts. For example, it will not help if you empty the joint account just after the Ex puts their salary in it.
- You are jointly and severally liable for any overdraft attached to the account. So this may be a reason to freeze the account until things are sorted out.
- You need to start with paying the essentials; mortgage, utility bills, council tax, food essential travel expenses.
- Double check you are receiving any benefits you are entitled to. Have you checked your tax credits? have you told the council if you are single in your house? You will get a reduction.
- These days it is unusual, but you may be able to change your mortgage to interest only.
- Think about changing any credit cards onto an interest free period if possible, just to give yourself some breathing space.
- Mediation may a cheaper way of getting to a deal than lawyer’s letters
- Look to obtain legal advice , but at a defined and reasonable costs
Here is a link to the money advice service, a great place to start to rebuild your finances.
