It is unfortunate that life is not always love, bliss and roses. Many couples experience divorce which can be emotionally draining on the couple, family members and friends. However, there are a percentage of couples who do separate quite amicably. If you can work out your finances in an agreeable way, this will help you to move on with your own lives. No matter how old you are or how long you have been together, you will probably have a considerable amount of joint finances tied up in property, debt and savings. Sometimes tough decisions will need to be made.
Look at your cash flow
Any outstanding bills will have to be cleared. You will then have to work out if it is possible to run two households on the incomes each of you have.
Joint assets are usually vaguely known by each person in the relationship. However, there is much more to take into account than your home, your vehicle and your bank accounts. Any investments, superannuation accounts and pensions must also be taken into account.
How many loans and credit cards are in joint names? These joint debts will have to be attended to. When that process is done, get rid of any cards in joint names. Each person should then apply for a card in one name only.
Many couples will have to make a tough decision if one partner wants to keep the marital home. The first question to ask is: is it financially possible. The spouse who wants the home, could take out a loan to pay the other out. With this money, the spouse who has left the family home will then be in a position to purchase another property. It is better to speak to a lender with expertise in refinancing.
Don’t rush things
In the heat of the moment, many spouses make emotional decisions and wish to walk away from everything. This might seem like a good idea at the time, but months later, reality will set in and you will then wish you had taken what you were entitled to. So do not rush any important decisions; take your time. This is your life and you are capable of making the right decisions. Do not allow anyone to put unjustified pressure on you, especially your spouse or legal advisors.
If you have tried to sort things out but seem to be going around in circles, mediation may help you settle things. Parting ways may sometimes make things financially difficult for one or both parties. Some lifestyle changes may be needed. A big question is whether to rent or buy. Everyone wants some type of secure living arrangement. You may be able to pay out your joint mortgage and take on another mortgage to purchase a property of your own. Lenders come across this situation weekly and can offer solutions like an Clear Path Home Loan from BOQ. This type of straightforward loan suits many people looking to purchase a property the second time around.