The Jennifer Aniston movie "The Break-Up" has beat reviewer predictions to become the number one film at the box office this week. In this film, a cohabitating couple break-up only to find that the real battle is still ahead. The couple shares ownership of a condo and can’t agree on how to settle their finances.
In reality, this situation is all too common. Around 5 million couples currently "cohabitate" in America. These informal set ups are a great way to test the waters of domestic life before marriage but can be fraught with danger if the relationship doesn’t work out. For example, a friend of mine was in a relationship where he owned a condo and two investment properties with his girlfriend. When it came time to break-up, they had to work together for months to sell the properties and divide their assets.
Here are few tips to help you manage your finances during a break-up:
- Couples who buy property together should have first worked out a cohabitation agreement. This agreement can make deciding what to do in the event of the break up much easier.
- If you don’t have a pre-arranged agreement, try to work out a solution amicably with your ex. Selling the property and dividing the profit based on the percentages contributed may be simplest option.
- Talk to a lawyer about dividing the property if you can’t come to a fair agreement.
- Close any shared credit cards or small loan accounts. Joint accounts will continue to be reported on both your credit reports until closed or refinanced.
- Divvy up your savings. If you saved together for an emergency fund or vacation fund, split these savings evenly.
- Check your credit reports and sign up for credit monitoring. Angry ex’s may intentionally misuse your accounts or commit identity theft.
- Create formal payment plans. If an ex is going to pay you back over time, make sure you have a detailed plan. Setting up a direct transfer from their bank account to yours each month or establishing a PayPal account could help.
- Try to keep emotions out of it. Sure, you may want to get revenge on your ex but, battling with them over money is just going to add unnecessary stress to your life.
- Pick your battles. Sometimes it is worth loosing a few hundred or thousand that you are owed in order to have a clean break from your ex.
Have you gone through a break-up? How did you manage your finances? Share your tips and feedback in the comments section below.
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I like how you tied that together.
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http://www.mymoneyforest.com/book-review-credit-scores-credit-cards-by-the-silver-lake-editors/