A potential client rang me the other day and told me that his wife had left him with the kids, and he had to leave work to care for them and was now on Centrelink benefits. His wife also spent to the limit on their joint credit card after she left, a debt he was now jointly liable for.
At around the same time, another potential client had just found out that his wife had been visiting dating sites for 18 months. He had found thousands of emails to prospective new partners. She moved out and their teenage child was so upset she moved in with her grandparents and stopped speaking to her mum. The clients situation was precarious because they had a joint mortgage, but communication had broken down to the extent that there was no plan about how mortgage payments would now be handled.
About 70% of the work we do follows separation and divorce. The median age at divorce for males is 45.2 years and the median age of females is 42.5 years in Australia. It is much better to sort these types of situations BEFORE they detrimentally effect 2 families. Here is how to do it…….
At this time it may feel like the best idea is to bury your head in the sand. But it is better to take some simple steps to protect your finances. Here are a few tips to think about when you are going through a separation or divorce:
- If you move out of your home, ring all the credit providers you have obligations to, and tell them your new address. Explain your circumstances. A credit provider’s only obligation is to send correspondence to your last known address, so you need to tell them what it is.
- Add a note to each credit providers file that you are currently experiencing hardship, and ask them what they can do to help.
- Cancel any credit cards that expose you to spending you have not agreed to.
Doing any of these things might make a big difference to your finances as you move through a separation or divorce.