Debt problems can often arise when relationships break down. To reduce the financial impact of relationship breakdown on you, ensure that your ex-partner does not take savings and use available credit from, for example, joint bank accounts, home loan redraw facilities and credit card accounts.
Five steps you should take
Establish a new transaction account in your name only and ensure that your salary and other payments are diverted to the new account.
Close joint accounts. You may wish to use any funds remaining in a joint account to pay joint debts of the relationship, childrens expenses etc.
Tell your bank or lender about the relationship breakdown and demand, in writing, that it stop any further use of the loan redraw facility. This will be critical if the redraw facility allows either party to access the available credit without the other borrower's authorisation.
Cancel any right your ex-partner may have to access your credit card account as a secondary card-holder.
Arrange for copies of all joint account statements to be sent to you if you change address.
If the breakdown is permanent, you will generally need advice from a family law lawyer about dividing the property of your marriage or de facto relationship. For more about family law and property go to
www.familylaw.gov.au (on the the Federal Government Attorney-General's website). Or ring the Family Relationship Advice Line on 1800 050 321.
Community legal centres and legal aid services provide free initial advice about family law matters. Centrelink also has helpful information for people recently separated or divorced (
www.centrelink.gov.au); search under Individuals.