Separation and your finances

Separation and your finances

Divorce or separation can have a huge impact on your finances. Discover out what it could affect, what you need to do, and where you can find the help and support you may need.

How separation affects your finances

A breakdown in a relationship can have a huge impact on your life. It will often cause emotional stress, a change in your living conditions, your routine may change, and it may affect you financially. The main reasons why separation can affect you financially include a decrease in the household income, solicitor costs if you’re going through a divorce, and a change in childcare costs.

While you deal with this life-changing situation, it’s important to understand what support is available to you to help you through this difficult time. We take a look at some of the situations during a separation which could put a strain on your finances.

A decrease in household income

The decrease in the household income could particularly have a huge impact if you relied on your ex-partner’s income during the relationship and you only have a part-time or low-paid job or stayed at home to look after the family. You may be left with no choice but to seek an alternative job, adding more stress to the situation.

Solicitor costs

Unless you have an amicable split, a divorce can cost a substantial amount of money. This can cause a lot of strain on your finances as well as your mental health. Seeking advice on how to cover the costs and support if you’re struggling is important.

Childcare costs

If you have sole custody, or even split custody but you have the child/children the majority of the week, despite child care benefits, you may still find yourself struggling with your finances. This could be due to a number of reasons, including an increase in childcare support so you can go to work, or an increase in outgoings on just the one wage. Find out what you’re entitled to with the gov.uk calculator.

Being left with debt

If your partner got themselves into a lot of debt and left it for you to deal with after separating, for example, if they used credit cards in your name without you knowing, then this leaves you in a difficult situation. It’s important to find out what financial support you are entitled to, and what legal advice is available.

Joint accounts

If you have a joint account with the partner you have separated from, you will need to contact your bank to close the account or transfer it to just one person. They will need permission from both parties to do this. You may also want to contact credit reference agencies to ensure there are no ties between yourself and your ex-partner so that your credit score can no longer be affected by their financial situation.

Notify other organisations

There may be other organisations that need to be informed of your separation, including HM Revenue, the local council to review your council tax, your mortgage provider or landlord, and any other companies where you think you could be connected.

Your thinkmoney joint account

If you have a joint account with thinkmoney, and you would like to amend it to take one person off the account, please get in touch. You can contact our specialist team on 0161 779 5000 who can help you with your account and offer any other support you may need with your finances.

Alternatively, you can take a look at our help and support pages, where you may find the answers to your questions with regards to your account.

Support for separation and your finances

No matter your situation or what you need support with, whether its child care costs, solicitor costs, or any of the other situations above, there are many organisations that can offer advice and support to help you out. Here are just a few of them:

  • Citizens Advice – For free advice on a range of situations during a separation.
  • Gov.uk – The government’s advice on what to do if you separate or get a divorce.
  • Money Advice Service – Advice if your partner has been abusing your finances.

Need some help?

We’re happy to support you with any issue that might be impacting your finances. Contact our specialist team on 0161 779 5000.

Opening times:

Monday - Thursday: 8:00am - 8:00pm

Friday: 8:00am - 6:30pm

Saturday: 8:00am - 4:30pm

Need some help?

We’re happy to support you with any issue that might be impacting your finances. Contact our specialist team on 0161 779 5000.

Opening times:

Monday - Thursday: 8:00am - 8:00pm

Friday: 8:00am - 6:30pm

Saturday: 8:00am - 4:30pm

How the thinkmoney app can help you manage your money

Our budgeting feature makes managing your finances effortless. Once you have told us how much your bills are each month, we will ensure enough is kept aside. That way you can’t accidentally spend it so you’ll never miss a bill again. With 24/7 access to your account via the app, you can:

  • Send money in seconds
  • Check your balance on the go
  • Secure Face/Touch recognition
  • Manage Direct Debits
  • Manage standing orders
  • Freeze your card