At Super-Advice we are about all things financial, but more importantly, helping people understand so they can get ahead financially.
Leaving a long-term relationship involves significant emotional and practical changes, including financial considerations that have a lasting effect on your future. Here are the top five financial considerations to keep in mind.
Joint assets and liabilities or debts
Evaluate all joint assets including bank accounts, properties, investments, and also debts or liabilities such as loans and credit card debts.
Deciding how to divide these assets and liabilities fairly can be complex and may require legal assistance. Consider the implications of selling assets. Especially, if the market conditions are not favourable.
Living arrangements and costs
Determine your future living arrangements. Moving out may involve purchasing a new property or renting, which includes costs like down payments,moving expenses, and possibly higher living expenses. Adjust your budget to reflect your new single-income status and living expenses.
Insurance and beneficiaries
Review and update your insurance policies, including health, life, and property insurances. Ensure that your beneficiaries are updated in accordance with your current wishes.
You may also need to secure new policies if you were previously covered under your partner’s plans.
Retirement plans and pensions
Understand the impact on your retirement plans. In some jurisdictions, retirement savings accumulated during the relationship may be considered joint assets. It’s essential to get a clear picture of how your retirement plans will be affected and make adjustments.
Legal and professional fees
Be prepared for potential legal and professional fees associated with dividing assets, negotiating agreements, and possibly mediation or litigation. These costs can be substantial and should be factored into your financial planning. It’s advisable to seek professional advice from a financial adviser.
That’s a wrap
An accountant and or a lawyer who can help navigate these considerations based on your specific situation and your local laws. This support can provide you with a comprehensive strategy for managing the financial aspects of leaving a long-term relationship, ensuring you make informed decisions and set a stable foundation for your future.
If you need any financial help or advice please get in touch with us at Super-Advice.
