Dealing with Debt when Separating
One of the concerns that many couples have while separating is on debts. In most cases, when couples incur debts together, they do not consider situations whereby they may face problems that warrant their separation. Here are some of the ways of dealing with debt when separating.
Get all details on a paper
The first thing you should do is to get all the information regarding the debts on paper. This is the perfect way for you to get a clear view of the financial situation. By seeking services from highly qualified and experienced family mediation service, you will be instructed on all what you should include in your paper about the debts you have. In addition, you also get the right course of action you need to take.
In case you have some fear that your spouse may incur more debts which would make things worse, it advisable to take the right actions to prevent this. In a normal situation, you should first negotiate matters with your spouse.
However, the most important thing you should do is to ensure that the financial position of your family is protected. It is good to note that both of you are liable for debts if you are signatories. It is advisable you inform your spouse on the steps you have taken and the reasons why you have decided to do so. Do this as fast as possible to avoid any kind of shock and resentment later on.
If you hold joint accounts, you need to request the bank to freeze the accounts until you reach a financial settlement. However, note that if the accounts are frozen both of you will not be able to make any withdrawals.
For any withdrawal to be done you have to ask the bank for joint signatories to withdraw. You can also decide to close the joint accounts and make an arrangement for a specific sum of money to be paid to your partner personal account. This is the better option if you are the one who earns more money and there are children.
In case you hold joint store or credit cards, you need to take some action. If you are to cancel such joint cards completely, all money you owe would be repaid or cancel the authority your spouse has to use of the cards if you are the main holder. You can also opt to reduce the spending limit.
Rent and mortgage
If you have a mortgage or rent that you feel you may not be able to continue paying, you need to contact your landlord or lender. Make sure that you put down any agreement you make in writing for future references and file the documents properly.
You should not be afraid to discuss with your landlord or lender so that you can have some temporary arrangements if you are unable to make the payments. This will ensure that they do not take any legal action against you for such non-payments.
Take full control
Even if you seek advice from professionals, you need to note own the entire process. Be ready to make all the calls and paperwork involved. Once you are in full control, then you are in the right way of regaining some control in your life.
Look at your bills, plan a budget, seek advice and then you will be able to make informed decisions. By being able to deal with your debts when separating you will feel like a heavyweight has been lifted from you.
Rules to follow
By following these rules you will be able to take full control of your debts when separating.
· Do not assume the problem because if you do, things will just get worse.
· You should never borrow more money to pay off your debts without seeking advice first. Such borrowing may put you into more difficult financial problems.
· Make sure that you are claiming all your benefits. For instance, in case you are sick, you need to check if your payments are covered by insurance.
· Get in touch with your lenders and explain your situation. Negotiate with them and come up with a written agreement.
· Take care of your priority debts first. Such debts include those that can make you lose your property or have your electricity or bills cut off.
· File copies of any documents or letters you send or receive.
Any questions regarding your finances after separation please call us today on 03300101367