Money and your relationship
Money can make or break a relationship. It’s one of the major causes of disagreements and could negatively affect your marriage or partnership.
If you and your partner have different ideas about spending and saving, it could cause lifelong arguments.
The only way to reach consensus about money decisions is to talk about it. You may have to reach positive compromises. Come to a decision, for example, about how much you should save each month and how much you can spend on indulging the kids.
Breaking up
Unfortunately, not all relationships end up ‘happily ever after’. One in three marriages in Britain ends in divorce. It can be costly, with thousands of pounds spent on lawyer’s fees. But if you and your partner are sensible about splitting your assets, then you can avoid some of the heartache associated with divorce – and some of the costs.
Don’t let divorce put you in debt
Divorce can have a negative effect on your finances whether you’re the partner leaving the family home or the one who’s staying.
If you are leaving the family home you may well be expected to pay the majority of the running cost and mortgage, particularly if the remaining partner is not working and raising a family. This can make it difficult to buy a new property – be realistic on any borrowing or new mortgages you look at. You may also need to look at your living expenses as you will have to maintain two households.
If you stay in the family home, be realistic about whether you can afford to run the home on your own, even if you have maintenance. While your home may be very important to you, you need to consider all options and moving may offer you and your children more financial security.
When it comes to divorce, if possible discuss and agree financial settlements and the dividing of assets, either with your partner or with a mediating body. Lawyers cost a lot of money and are often the only financial winners in divorce cases.
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