When it comes to dealing with the stress and strain of separation, money is always a major part of the argument. When you split up with your life partner, it’s vital that you can both work together to find a way to solve the issues together. While you may no longer be together, there are a variety of things that require immediate decisions to be made, one being, the repayment of mortgage and loans.
The marriage might end abruptly but the debt doesn’t. Someone needs to continue to pay credit cards, home loans, car loans etc. Thus the reason urgent financial arrangements post-separation is a vital step. While you may have no desire to keep your relationship alive any further, you will need to resolve who handles the debts at least until everything else can get sorted.
How to resolve immediate financial decisions
If you can’t keep the lines of communication open enough to resolve the repayments between yourselves, there are a few options. One being mediation. Mediation is the tool we use to allow both parties to talk about their immediate financial concerns with a mediator. If you fail to come to resolution in mediation, the next step is arbitration. Arbitration allows both parties to provide information about the immediate financial situation and repayments to the table, and the arbitrator makes the decisions based on those facts. The outcomes are binding and need to be respected and adhered to. They are enforceable by the court and consequences apply if you don’t comply.
Breakups and breakdowns are tough
Given the harsh nature of many break-ups, it’s not uncommon for one party to be acting in a very unreasonable manner while they manage difficult emotions. They may show no willingness to take responsibility for what has gone wrong in your relationship to this point or they may be completely lost. They may be sitting in hurt, frustration, and anger amongst a variety of other things.
Many times the focus is on that initial breakup or divorce, and the coming to terms with the long term break up. It’s really helpful for another person to be involved in the process of managing the immediate financial situation before it becomes a crisis. Trying to tidy up all of your debts and work out who should be paying what is a major challenge and puts enormous pressure on everyone. Mediation allows you to remain in control of the financial decisions. However, where there is income disparity, this is where arbitration is a powerful dispute resolution process which can be just about putting in place a holding pattern so no one is disadvantaged more than the other while everything gets sorted out on a final basis. Our arbitrators know how to work through various situations.
Arbitration resolves out of court
One of the main reasons Arbitration works, is that the arbitrator has the power to have the final say over who and how mortgage, debts, credit cards and loans will be repaid, if you can’t or the other side won’t agree in mediation. The outcome, structure and guidelines that come out of an Arbitration allows you to quickly get on with sorting out the the other big property settlement decisions that require your attention. The arbitrators decision about the interim financial repayments takes the pressure off. The arguments are no longer about day to day financial management between the two of you, and the focus can be on the big picture of how you would like the property settlement to be resolved.
Put simply, it is not likely that you will both find a happy and honest consensus talking over and over about the affordability of debt and the consequences of it not being paid. No amount of arguing will make the other come around to your way of thinking. With Arbitration, though, the final decision is made by the Arbitrator, and the decision is final.
Arbitration is solutions orientated. Done right, this can be done quickly and have a monumental impact on the way that you can then deal with your children, maintenance, property settlement, and divorce.
Arbitration can help you to get a touch of finality, and make sure that there is an enforcable agreement about the immediate financial arrangements that are worrying you. If you are sick of being stuck in a position where you are the only person taking responsibility for debts, or feel financially vulnerable, arbitration can help bring about of common sense solution in the short or long term.