In case you missed it, Andrea Riley, Chief Marketing and Public Relations Officer for Ally, and Kathie Patterson, Chief Human Resources Officer for Ally, shared their expert advice on how to break-up gracefully (with your finances intact) on a recent episode of Your Cheddar, our weekly personal finance livestream in collaboration with Cheddar.
Breaking up is never easy – on you or your finances. And we’re not just talking romantic break-ups!
Whether you’re separating from a domestic partner or spouse, making a career shift, or even moving to a new city, any major life transition can put your finances on the line.
Check out the video below for tips on how to protect your finances during any tough transition.
Having a response plan and a rational head are both critical in protecting your financial health during any split. If you find yourself in the midst of a break-up, lean on the expert tips below for a better financial rebound from each type of breakup.
Breaking Up With Your Job
- Think and act in the long-term. When communicating the decision to leave with your employer, focus on yourself – your career goals, development, and desired opportunities – rather than blaming your resignation on what the company may be lacking.
- Demonstrate professionalism. Keeping up your reputation throughout the process can help you retain your network and maintain professional relationships.
- Roll over your 401(k). Either into an employee plan at your new company, or an existing or new IRA.
- Be introspective. Whether you chose to quit, or you were let go – try to explore what brought about this transition and learn from it. Ask yourself if cultural fit had an impact.
Breaking Up With Your Spouse or Significant Other
- Protect yourself first. If your spouse or domestic partner is listed as a beneficiary on your life insurance, 401(k), or similar accounts, be sure to remove them sooner rather than later – while ensuring you stay within the confides of any legal “cooling off period” that might apply to your situation.
- Take an inventory. Take stock of your shared financial and physical assets. This includes investments and liquid cash like savings accounts.
- Separate your assets. Try to divvy up your shared assets in a natural, rational way. Avoid devoting additional time, stress, and legal fees to fighting over the small stuff.
- Become your own CFO. If you previously relied on your partner to manage your shared finances, this is a great opportunity to educate yourself as you learn to take control of your own finances.
Breaking Up With Your City
- Assess the cost of moving. Are you financially prepared to move? Making this transition can come with associated costs such as renting a truck, buying plane tickets, or hiring moving assistance.
- Assess your new cost of living. Beyond a new mortgage or rent payment, understand the total cost of living in a new city. This accounts for things like local taxes, the cost of your new commute, and even the price of gas and groceries in the area.
- Check the local job market. Especially if you’re relocating for a new job, educate yourself on the typical salary for your position in that area and be prepared to discuss the cost of living adjustment with your new employer.
Now it’s your turn. Have you experienced a tough break-up? Let us know how you handled the financial aspects of that experience and what words of advice you have.