October 05, 2016
Interest rates will rise & fall but life goes on & not always as we expect it to. Here are some tips for when a relationship has ended:
Seek expert advice: a lawyer may be needed to negotiate your settlement; you will also need your own financial adviser.
Mortgage Choice Financial Planning can help in the financial area. Our Financial Adviser will engage with you to understand your needs & build a financial plan to take you into the future.
The family home may be part of a settlement; if it comes complete with a large mortgage it may not be possible to take that commitment on so you need to speak with me, your mortgage broker, to discuss if this is an option. In regard to applying for a loan to either purchase a new property or to “buy out” a spouse/partner, a lender will require proof that there has been an agreed financial settlement especially in regard to the family home & any investment properties (if applicable).
While you are sourcing your expert advice you can take control of some details immediately:
- separate your bank accounts
- cancel your joint credit cards – whether you are the primary or secondary holder. You may have an amicable divorce but in the event it goes sour you want to make sure you are protecting yourself from potential risk
- check other financial arrangements eg. insurance policies (including beneficiaries of a life insurance policy), health insurance & car registration
- make a budget to start assessing what your cash flow will be as a single person
- make a list of the assets you will gain or lose in the split
You can read further information on the ASIC website:
Divorce or separation is never easy but seeking the right professional advice helps you make the right decisions for a healthy financial future.