Helpful guidance on separating your finances on a relationship breakdown

  • Author: David Crosby
  • Posted on: 28th February 2014
  • Posted in: Blog

At Crosby & Woods regrettably we see this situation faced by many of our clients who after a relationship breakdown are left to deal with the consequences of a former partner’s debts, often debts that they were never aware of as their former partner had actively concealed them.

As this article demonstrates, financial organisations can be quite inflexible in treating separating parties as individuals with the result that the financial irresponsibility of one can have a very prejudicial and long term affect on the other person’s future ability to obtain finance in their own name. The guidance here is just that, guidance, but if it helps to improve a person’s financial history and credit rating then it certainly is helpful.

In terms of mortgage finance, as a firm we also fully endorse the guidance that speaking to a very experienced mortgage broker is a sensible idea when looking to remortgage or obtain a mortgage to buy a new property in your own name. Many banks operate a ‘computer says yes/no’ approach and that inflexibility can make trying to move forward very difficult. An experienced broker will know not only which mortgage lenders to approach (and equally which ones to avoid) but also how best to present an application so as to explain a post separation financial position in a way that minimises any damage done by a former partner and which conveys a fairer and more accurate financial picture upon which a lender can make a reasoned assessment.

For guidance and proactive advice on dealing with financial issues after the breakdown of a relationship please call our experienced team of matrimonial solicitors on 01273 834 600 or email advice@crosbywoods.co.uk for a free first interview to discuss what your options are and the way forward to resolve any issues arising from the separation.

To discuss selling a property after a relationship breakdown and thereafter buying a new property to live in, then please feel free to also call our Law Society Quality Conveyancing Scheme (CQS) conveyancing team on 01273 734 600.

http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/10663551/Ex-husbands-debts-barred-me-from-a-mortgage.html