How to fall in love, not into debt

How to fall in love, not into debt

Almost a third of people in debt blame their financial situation on a relationship breakdown. \r\nBeverley Darwent, a partner in family law for law firm Pannone ( www.pannone.co.uk), gives her tips on\r\nprotecting yourself and your money in\r\na relationship...

Put your name down

If you’re funding something, have it in\r\nyour name so you can sell the asset and\r\nrecoup some of your losses if things turn\r\nsour. Ideally, register cars with the DVLA in\r\nyour name – this will make it harder for him\r\nto sell it (it needs your signature).

Lending money?

Make sure you have documents to prove\r\nthat any borrowed money went straight into\r\nhis bank account.

If you’re lending to someone, even\r\nfamily, always get a signed document like an\r\nIOU. A solicitor can draw up a formal loan\r\ndeed for less than £200.

Love shack

Co-habiting? Keep everything separate\r\napart from a joint account where you each\r\npay a certain amount in each month and\r\nagree what it is for, e.g mortgage, bills etc.

There are different ways of owning a\r\nproperty jointly. Opt for “tenant in common”\r\nownership and you’ll get a separate\r\ndocument that says what share you own\r\neach. It means if your partner goes bankrupt,\r\nthe bank wouldn’t be able to reclaim your share.

Game over

Post break-up, clear all joint bills\r\nimmediately and then inform the supplier\r\nyou wish to terminate your contract with them.\r\nSettle and close joint accounts immediately.\r\nIf you’ve applied for credit together, links\r\nto your partner’s credit report will be shown\r\non your report as ‘associations’. You can\r\napply for these to be removed once you\r\ncan prove that you no longer have any\r\nfinancial connections with your partner.

For free debt advice, log on to National\r\nDebtline (www.nationaldebtline.co.uk) or\r\nConsumer Credit Counselling Service\r\n( www.cccs.co.uk). For a free credit report and credit-check service, contact www.equifax.co.uk.