Separation almost always has a significant financial impact. Two people who were sharing costs now need to maintain two separate households on the same income. Building a clear picture of your new financial position, and taking practical steps to stabilise it, is one of of the most important things you can do.
Start with a budget
Create a realistic budget for your new circumstances. What are your essential monthly outgoings, housing, utilities, food, transport, childcare? What is your income? Where is there a gap, and what are your options for addressing it?
Check what benefits you are entitled to
Many people going through separation are entitled to benefits they are not claiming. These might include:
- Universal Credit
- Child Benefit and Child Tax Credit
- Council Tax Reduction
- Housing Benefit
- Working Tax Credit
Use a benefits calculator, such as entitledto.co.uk or Turn2Us, to check what you may be entitled to.
Update your accounts and direct debits
Close joint accounts or remove the other party's access. Update direct debits and standing orders. Make sure your salary is paid into an account only you control.
Seek advice if you are struggling
If you are in financial difficulty, seek advice early. Citizens Advice, StepChange and National Debtline all offer free, confidential support.