Divorce and separation

One of the most significant factors to consider as you navigate a divorce or separation is your financial situation. Here's what you need to know in terms of how it will impact you and the steps you can take:

How will my separation affect my mortgage?

Your separation can affect your finances in a number of ways, especially if you have a joint mortgage. There are several options available to you in terms of how you proceed with your mortgage during and after a separation/divorce:

• Removing your name/your partner’s name from the mortgage

• Buying out your ex-partner's share

• Selling the property

• Remortgaging the property

No matter which option you choose, it's important to get mortgage advice before making a decision. Your mortgage adviser can help you to understand your options and make the most suitable choice for your financial situation.

Check out our article on what to do with your mortgage in the event of divorce or separation.

What else do I need to consider?

In addition to your mortgage, there are a number of financial issues that you need to consider when you separate from your partner. These include:

• Bank accounts and credit cards: You'll need to decide what to do with any joint bank accounts and credit cards. You can either close them down and open new accounts in your own name, or keep them open and give your ex-partner their own card.

• Debts: If you have any joint debts, such as a car loan or a personal loan, you'll need to decide who is going to be responsible for paying them off. You can either agree to pay off the debt together, or one of you can take over the debt and release the other.

• Insurance: You'll need to make sure that you have adequate insurance in place or that existing policies are updated to reflect your change in circumstances, such as life insurance, critical illness insurance, and income protection cover. 

• Child support: If you have children together, you'll need to make arrangements for child support. This is a payment that one parent makes to the other to help cover the costs of raising the children, with the amount of child support provided calculated using the income of both parents.

• Update your will: It’s important to update your will as soon as possible after a separation. This will ensure that your wishes are carried out in the event of your death and that your estate is distributed according to your wishes.

We're here to help

If you're going through a separation and have questions about your mortgage, we can offer guidance and information that will help you make the right decision for your financial future. Contact our team of advisers today to learn more.

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