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Financial Separation Advice & Legal Advice - Parent Connection

Tags: financial separation, financial separation advice, separation finances
Content Types: Legal
Categories: Separating

There are two elements of the finances that you need to consider when you are separating;

  1. The division of your assets (possessions, savings etc) and liabilities (debts).
  2. Your budget – the weekly and monthly income and outgoings.

Assets and liabilities

Before you start deciding who has what you need to have a complete and up to date picture of what both of you have - individually and jointly. This is especially important if you are someone who has never been involved in the family finances. It’s easy to feel out of your depth but you’ll be surprised how quickly you catch up.  Start by making a list of all your assets and debts and finding any paperwork that goes with them. A typical list would include a house, a mortgage, some bank accounts, possibly some savings, a car, a pension, and some credit card debts. Some people’s lists are much simpler whilst others are much more complex if there are businesses and investments to value.  If you are using a mediator or solicitor they will provide you with a financial form that will help you to gather all this information. Alternatively you can use an on- line form here

You are free to decide how you share what you have in whatever way you wish.  Before you make any decisions though, it is helpful to understand your legal rights and what a court would expect to be a sensible outcome given your individual circumstances. The law is different depending onwhether you are married or unmarried. You can get further advice in the article ' What to keep in mind when separating

Budgets

Very few people can say exactly how much and what they spend their money on each month. Separation means there is usually less money to go around so it’s crucial that you have the information that allows you to check that your future living costs are going to be affordable. The only way to do this is by preparing a budget.  First, be clear what your monthly income is, this could include wages, child benefit, tax credits and maintenance. Then start keeping a record of where the money goes. A family mediator or solicitor will give you a budget sheet that will help to make sure you don’t forget anything. Alternatively you can use an on-line budget here

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