LONDON—Money may not buy you love, but research from global information services company Experian suggests that, if you’re not careful, love can certainly wreak havoc a person’s finances – and possibly continue to do so long after a relationship has ended.
An eighth of Britons (12%) have seen their financial situation or credit rating suffer because of a romantic relationship – with 7% having broken up with a partner over money matters. And the financial hangover after a breakup can last longer than many relationships, with a third of those affected still paying the price of their ex’s financial problems three or more years later.
Further research carried out by Experian suggests that this could be because the vast majority of people (79%) affected by their exes did not take steps to uncouple their credit report from their ex’s after the relationship ended, by asking the credit reference agencies for a “financial disassociation.”
A financial disassociation, according to Experian, is effectively a “credit divorce,” which lets lenders know that two people should no longer be seen as “a couple” financially.
“Having joint credit accounts with a partner or spouse is one of the biggest commitments you can make in a relationship,” said Julie Doleman, managing director at Experian Consumer, UK & Ireland. “Financial ties, such as a joint mortgage or a bank account, will appear on your credit report as an ‘association’ to your other half. This association may stay on your credit report after the relationship has ended if you don’t ask to have it removed. So—although it may be the last thing on your mind following a relationship breakdown—we encourage people to make sure they’ve separated from their ex-partner financially as well as romantically.”
Other findings from Experian include:
- Three quarters of couples (72%) don’t discuss their credit history.
- 62% keep their credit card debts secret from their other half.
- A quarter of those affected by their partner’s credit history found getting a mortgage more difficult or expensive.
- 33% were unable to get a credit card as a result.