Paying For Our Ex’s Financial Choices

Being valentines day today I hope that your world in filled with love and happiness today but I also appreciate not everybody is currently all loved up.  Unlike a couple of generations ago relationships and marriages don’t last for life.  My parent’s who married in the late 60s were together for life.  I know many people my age (in their 40s) aren’t as lucky as my parents were, myself included and their marriages or relationships don’t last for life.  It’s always hard when you split from someone you used to love.  Somebody you set a home up with and thought you would grow old with.  Even harder if you have children.

Our lives become entwined even more so when you decide to live with your partner be you get married or not.  I’m not sure what the statistics are for those who don’t marry but it’s currently estimated that 42% of marriages end in divorce.  Now to me that seems like a lot of financial relationships also splitting.  The divorce itself is relatively easy until you get to the financial side of things where houses, cars, jewellery and even the good old TV needs to be split.

It is estimated that around 1.7 million Britons have taken out a financial product with a partner that they have since separated from. New research from free credit checking service ClearScore has found that millions of people in this country risk being turned down for credit including mortgages, credit cards and other financial products because although they have split from their ex’s they are still unknowingly financially linked.

Many people (69%) are unaware that once you have taken out a joint financial product, even after this product ceases you are both financially linked for 6 years after the link is severed.  If your ex partner then goes on to have bad credit then you will be affected by this for the next 6 years.  Research has shown the 94% of people believe the link lasts for less than 6 years.

In order to get the best financial products at the right price for you it is essential that lenders do not think you are a financial risk otherwise there is a likelihood you will not get offered the best interest rates or like rejected for credit all together just like 60% of credit applications in the UK are.

Justin Basini, CEO of ClearScore says:

“Millions of people risk being haunted by the financial ghosts of partners past. Even if your own credit report and score are in rude health, the way you are viewed by lenders can be negatively affected by your ex partners.  When a relationship ends, it’s your responsibility to ‘de-link’ your financial records.  I’d advise anyone applying for credit to check their credit report and if you’re still linked to someone whose financial behaviour you suspect could be detrimental, contact the credit reference agencies to request that your connection is severed.”

Hopefully, you have already severed links with your ex partners but if not it might be something you think about doing.  Where your current partner is concerned lets hope the roses, chocolates and champagne are a plenty today and you don’t have to consider making that financial split.

Happy Valentines!