When you’re going through a relationship breakup, money can be the last thing on your mind.
But there may be financial ties that need to be broken.
Pearl Akintola, consumer finance specialist at credit information firm Experian, says: “When going through the breakup checklist, blocking exes on social media is always at the top of the list, but figuring out how to cut financial ties is usually at the bottom. snub.”
She explains: “It’s important to disconnect financially from your ex.
“If you don’t take the necessary steps, then they will remain attached to your credit report, so their future spending and borrowing could affect your own financial opportunities.”
When going through your breakup checklist, blocking your ex on social media is always at the top of the list, but learning how to cut financial ties is usually at the bottom.
Pearl Akintola, Experian
Here’s Akintola’s guide to handling the different financial stages of a breakup:
1. The initial split
Akintola says that while friends and family will “offer a shoulder to cry on”, people may want to seek confidential help elsewhere with their finances, which could include guidance from professionals.
He adds: “Services like (government-backed) MoneyHelper will help you understand your options and the next steps you need to take – supporting you throughout the process.”
If you’ve been renting together, it’s important to pay attention to the rental agreement.
Akintola says: “If you were living with your ex and you were both named in the agreement as tenants, you are both responsible for the rent until your agreement ends.
“So contact your landlord or estate agent and inform them of your intention to leave. Discuss what this will mean for the lease and how you can end your liability to it.”
It is also important to take care of household bills.
Akintola suggests: “Before you move out, contact your service providers for any utility bills in your name and let them know your plans. Remember to arrange how you will pay the balance due on any final bills.”
In addition to the bills, it’s also important to split any savings and discuss how the money will be divided fairly so the accounts can be closed, she adds.
Some people may also still have holiday reservations with their exes.
If you have travel insurance, Akintola suggests checking what it says about cancellations.
He adds: “If you still want to go on the trip, maybe ask a friend to go with you! Contact your travel agent to see if you can change the name on the booking – there may be a small charge for this.”
Some people also continue to share responsibility for pets after a breakup.
Akintola says, “Having a pet comes at a cost, so be sure to discuss how you’ll take care of expenses, such as an unexpected vet bill.”
2. Go for a financial refresh
After a breakup, it’s natural to want to make a fresh start with new possibilities.
But before you say goodbye to your ex completely, Akintola suggests, “Take a look at your credit report, as it may be the last thing that connects you to them.
“If you’ve had a joint account or taken out some form of credit such as a loan with them, then your credit report will link to theirs and show up as a financial link on your report.”
He suggests asking the credit reporting agencies to remove them from your report, adding: “For them to do this, you must have paid off and closed any joint accounts and credit agreements or transferred them to one name.”
Don’t forget to reset any passwords you may have shared with your ex in the past.
Akintola says, “Now that you’re on Netflix and chilling with someone else, make sure you update your password. This also applies to online shopping sites.”
He adds: “If there are any details in your ex-partner’s name that have your card details on them, log in to them and delete your payment details on file.”
And while you’re making changes, it might also be a good time for a financial shakeup.
Akintola adds: “To complete your financial growth, review and get your finances in order.
“Think about how you will afford your new rental yourself, get rid of any unnecessary fees and budget for those final utility bills.
“Then you can invest in the ultimate revenge outfit or dye your hair.”
3. Shop for a new account
Akintola suggests, “Find yourself better financial options, like a better savings account or a cheaper credit card.
“Now that you’ve ditched your joint savings account, find the one that’s right for you.
“When you decide to open your own savings account, shop around before you settle on one. Think about how much interest you will receive and whether it is fixed or depends on the market.’
Easy access savings accounts are handy for “rainy day” funds needed in emergencies.
However, for long-term savings goals such as a house, it may be possible to find higher rates with a fixed-term savings account or Isa, suggests Akintola.
And if you’re dating again, Akintola says it’s important to stay vigilant when using dating apps and sites.
She says: “Remember to be careful not to share personal information that could be used maliciously, such as your date of birth or home address. Fraudsters can use this information to gain access to your bank account.”