Managing your money after a breakup

The end of a relationship is always hard, and it’s easy to overlook your shared finances. We’re here to make it easier for you.

When you’re going through a breakup, sorting out your money is often the last thing on your mind. But it’s important to make sure you’re financially secure for the next stage of your life.

Even if you only share a few bills, it’s best to disentangle yourself as soon as possible. Keep reading to learn how to start again financially after a breakup.

Work out what you share

Write a list of everything you share together financially. Things like tenancy agreements or mortgages, joint bank accounts or pets.

Once you know what you share financially, you can tackle them one by one.

Freeze joint accounts

Couples with joint accounts are both responsible for repaying the overdraft, even if your ex spent the money.  Close down your joint account as soon as possible. If the account is overdrawn, freeze it to avoid any further borrowing.

Decide what you can compromise on

When you’re dividing things, it’s possible that you’ll both want to keep some of the same stuff. Now’s the time to decide what you’re willing to let go of and what you won’t budge on.

Check your credit score

If you’ve ever shared any form of debt with your partner, their actions could affect your credit score. Repay your portion of the debt and close any shared accounts as soon as possible to protect your credit score.

You should also contact the relevant credit agencies and ask for a ‘financial disassociation’ to be created in your file so you can declare that you no longer share any financial ties.

Create a new budget

Take a fresh look at your expenses now that you’re single and budget accordingly. If money’s tight, try to find areas you can cut back in.

Maybe you could stay with friends or family to avoid paying rent for a while, or indulge in budget-friendly activities until you’re back on your feet.

Update your address

If you’ve moved house since the split, remember to update your address on any bills you used to share with your partner. You don’t want any important documents falling into the wrong hands, and you definitely don’t want to miss anything you might owe, just because you haven’t received any letters.

Re-evaluate your financial goals

Now that life looks different, it might be a good idea to rethink your financial goals. If your hopes and dreams for the future were influenced by your partner, now is a great time to take stock of what you want.

Other things worth mentioning

• Make sure you reclaim any money they owe you if you’re planning to rely on it
• Update your will (if relevant)
• Get any financial agreements between the two of you in writing
• Consider selling any old things that remind you of them – it’s an easy way to make some extra cash

Always have an emergency fund

If you don’t have any cash to fall back on right now, it’s best to start saving as soon as you can. We recommend you have an emergency fund of three months’ worth of expenses stashed away for times like this, or other unexpected situations.

Finding the time to start again financially after a breakup can be difficult and emotionally draining. But it’s also a great opportunity to rethink what you want for your own life.

Use this time to take care of yourself and plan to build the future you want. Sorting your finances is one simple way you can start to feel more in control again.

The information provided is financial guidance and should not be considered financial advice.