A recurring challenge we hear about is that the parties in the breakup do not agree on who should pay what fixed expenses. In many cases, this results in one or more invoices being sent to debt collection and possibly leading to payment remarks.
Remember: if you have a joint loan, such as a mortgage or car loan, you are both responsible for paying it. Even if you think you have paid your "share", you are jointly and severally liable for the loan.
Contact your mortgage bank early on and make a plan for who, if anyone, will keep the house or whether you will sell. For the bank to be able to look at solutions so that you can get loans independently of each other, they need to know what your financial situation will look like.
This process can be long and painful for many. It is also often an expensive process where both parties begin to feel what it is like to go from two incomes to one.
Regardless of whether you are the one who ends up with the home, your expenses will be greater than you are used to. You will then be dependent on being able to adjust your spending and standard of living to avoid financial imbalances. Many people who come to us have struggled to adjust their spending and use credit cards and consumer loans to maintain their previous standard of living. Over time, this can create problems that can have major consequences for your finances.
Mental health and finances are closely linked. Many people who come to us say that they lost control of their finances at a time in their lives when they were not doing well. A breakup is a major life upheaval and it is very common for your personal finances to be affected. If you find it difficult to talk to your loved ones about this, your GP can also help.
