Preparing for your separation
Clients regularly come to us for advice before announcing to their partner that the relationship is over. If you happen to be considering ending a relationship, then this information is important to know to prepare for your separation.
If you are unprepared:
- Your partner could run the joint credit card up to its limit by making cash withdrawals and you will be jointly liable for that full amount even if the other party got the cash. Yes, you are liable to the bank for the debt created by your partner withdrawing the cash! Though it may be possible to have your partner’s use of those funds taken into account in your property settlement!
- If you have a joint home loan with a redraw facility, the lender may be able to lend to one party without the consent of the other. Your partner could make a substantial cash withdrawal up to the limit of the facility. Again, you remain liable for the debt created by that withdrawal!
- Your partner may withdraw all the money in your joint bank accounts and by the time you find out, the money is long gone! Your only recourse then is to try to get some adjustment in your favour from other property held between you.
Before a separation you should gather up all your financial records, bank statements, superannuation statements and tax returns. If possible, also take copies of your partner’s financial records!
Book in for a free first interview with us, there are many other things, not only financial, we can discuss with you that will make ending a relationship a less risky process for you.
CAUTION: This article contains general information of public interest only and is not intended to be, nor should be relied upon as, legal advice specific to the reader’s personal circumstances. Should you have a legal matter, please seek professional advice before acting or relying on this content.