We can’t work it out
18 March 2008
Massive payout for Mills…but most divorcees end up with financial heartache
Heather Mills may have been awarded a staggering £24.3m in her bitter divorce from Sir Paul McCartney, but the majority of divorcees are not usually as financially lucky. The judge awarded Mills with a lump sum of £16.5m and assets of £7.8m, a settlement that equated to £17,000 for every day of the Beatle's and the former model's marriage.
Break-ups can be a distressing enough experience without financial ties, but when money is involved, things can get a whole lot more emotional. It's not just the heart strings that suffer during a split; it's the purse strings as well.
In an attempt to avoid financial stress in the event of a break up, credit reference agency Callcredit is offering financial survival tips to the newly single.
Callcredit's top tips to avoid financial heartbreak:
• Check your credit report - www.callcreditcheck.com - for a full picture of your financial situation
• Take control of your financial situation and contact your lenders as soon as possible to inform them of your situation.
• Always make separate arrangements and agree on how to divide up the money in all joint bank accounts
• If you have an account in your name, with a partner as an additional signatory or card holder, make sure you get back any credit cards and cheque books or you will be responsible for their spending
• Once you are happy that your lender knows you are financially independent, contact a credit reference agency such as Callcredit, who will put a "notice of disassociation" on your credit file. This shows that you are no longer liable for your ex partner's debts. If you fail to do this, whatever your ex-partner does can affect your credit file for the next six years
Mel Mitchley, Director of Industry Relations, Callcredit comments:
"With one in three UK marriages ending in divorce nowadays, couples are inevitably becoming more conscious of the impact of joint financial commitments.
"It is essential therefore that when entering into joint financial arrangements both parties have a full understanding of one another's assets and financial standing.
"For example, in order to avoid being liable for your ex-partner's debts after a break up, separating yourself financially by putting a notice of disassociation on your credit file makes absolute sense. Worryingly, failing to do this can affect your credit file for the next six years."
• Callcredit (www.callcredit.co.uk) is the UK's most innovative, state-of-the art credit reference agency, with an extensive range of information and value added services for businesses and individuals.
• MyCallcredit is the is the consumer arm of credit reference agency Callcredit and provides consumers with online access to the details of their credit file at http://www.mycallcredit.com/
• Callcredit has harnessed state-of-the-art information technology with an unrivalled knowledge of the industry's needs to develop a range of innovative information solutions. Solutions that are enabling major lenders and a host of other blue chip companies to address regulatory requirements, make better credit decisions, target new customers more effectively and manage existing customers more profitably.
• Callcredit is one of six core businesses that form the Skipton
Information Group. The other five are:
• Database management company EuroDirect
• Market analysis firm GMAP Consulting
• Online payment service provider, Legatio
• Scorecard development and affordability assessment specialist DecisionMetrics
• Marketing services and database specialist, Broadsystem
• Following the publication of Sir James Crosby's report, Callcredit has joined forces with the other two UK credit reference agencies to offer expert advice for victims of ID fraud. This joined up approach will mean that victims can contact Callcredit who will then alert the other two agencies to the fraud on their behalf. Our ID fraud team will also work with victims to contact all lenders and ensure that fraudulent information is removed and the consumers' credit history is fully restored.