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April 9, 2021

24 Comments

Breaking up with a partner is never easy. Add kids and money into the equation and you have the recipe for a high-pressure situation.

Here are a few tips to make the transition of breaking up a little easier when it comes to the financial side of things.

1. Fair Split

The first thing to consider is how your family has decided to divide responsibilities. Are you both working? Are you working fewer hours to be there for the kids or do one of you stay home and run the household? This all needs to be factored in as running a household is a full-time job and a huge responsibility that needs to be factored in when splitting, especially while that person finds an income. Engage a solicitor or financial consultant to help you determine a fair split if this is the case for you

2. Close All Unnecessary Joint Accounts

Next, close your joint credit accounts to limit damage to your credit score. By leaving them open, you will continue to pile up debt between you and your partner. This is the first thing you should do. Open personal credit accounts, get rid of the joint one

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3. Take Into Account All Your Kids Expenses

Factor in all of the expenses that you have for your kids. You may choose to have a joint account for them so that you can easily pay for the items that they need such as school tuition, uniforms, sport, food, and transportation

4. What About Your Home?

Do you own a home together? Again, speak to your advisor about the best way to navigate this. Some partners choose to sell the home and split the sale price. Others may divvy up assets or buy the other person out of the investment so they can stay put

5. Make A Budget

In any relationship, it is not unusual that one partner looks after the money and payment of bills. If you are not used to managing your cash affairs, make sure you put together a budget of your costs so your solicitor can make sure that you are receiving the correct amount until the financial/property settlement is completed. This is important because you need to make sure you can afford all of your expenses, but also live your life.

6. Downsize If You Can

Review current housing circumstances for the family. Based on individual requirements, potentially downsizing from a current property can mean more funds in the account and increasing a future earning’s potential.

Gerry Incollingo is the MD of LCI Partners which is a firm that specialises in accounting advisory, lending, wealth, property, insurance, and legal.

What are your top money tips for a couple considering breaking up? Tell us in the comments below.

  • I have seen friends go to war over this. So hard.

    Reply

  • I hope I don’t need this information but good for those who do.

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  • No idea what will happen when i face situation like this.But this is really helpful.

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  • I hope to never have to use these, but they’re all great tips. I’m not sure what the legal ramifications are either in terms of the split with super, etc.

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  • Some great tips! Breaking up is difficult at the best of times, throw in finances and children into the mix and it gets a whole lot harder.

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  • These seem good tips. I never hope to end up in a break-up

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  • If both sides can be as fair and reasonable as possible, it would make the whole difficult situation a little easier and much less costly.

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  • These are good ideas to remember. It’s never easy at the best of times

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  • Solid tips to know, I feel like some people just assume breaking up isn’t as difficult as it really is.

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  • I’m going through this atm with 2 primary aged boys. This is not an easy thing to do. Throw into the mix that there are no appropriate rental properties or they are way over my budget. And no family in the state we live in. Lucky that we are all still living gv in the same house and there was no 3rd party invoked or would prob be homeless

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  • I’m hoping we never have to go through this

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  • I wish it was that simple, so many friends have broken up recently and watching the disaster of money and kids and assets devision is awful..

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  • these are all v sensible suggestions, unfortunately when emotions come into it, cooperation and being fair can go out the window , with parents not for example making access or the funds they are meant to give, in order to get at the other parent.

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  • Try and bank 10% of your pay for 3 months than see how you feel. If than you can do it for 3 months try 6 than 9 than 12. Now think for 1 week before spending it. This helps you decide what you really need.

    Reply

  • I’ve no experience with breaking up, so can’t really advice. I think these are good points, but you’ll need both parties to be considerate.

    Reply

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