1. Separating is a difficult time filled with stress and emotion. A clean credit rating is essential to move onto the next phase of your life.

2. Are you maintaining your Credit Rating during Separation ? Is your credit rating in good health ?  Family separation is a very traumatic process. First and foremost you need to ensure the safety of yourself and any children impacted by the separation. Beyond this you need to commence preparing for your new life in a post separated environment.  There are very few of us that have the ability to move to your next phase of life without some form of financial assistance from lenders and mortgage providers. To ensure you position yourself for this it is important to ensure your credit rating is protected. In this article. 1) Is your credit rating in good health ? Is your credit rating in good health ? 2) Recent changes in credit reporting laws. How they impact on you. Recent changes in credit reporting laws. How they impact on you. 3) What you need to do when conflict arises What you need to do when conflict arises 4) Types of financial advice available Types of financial advice available 5) Where to from here Where to from here 6) About the writer About the writer

3. Are you maintaining your Credit Rating during Separation ?  While often the separation process may cause you to leave the family home, it is critical that you continue to meet your joint contractual obligations for loan commitments.  If there is the potential of late or missed payments, it is recommended that you contact your lender and advise them of your situation and seek their advice. The key word in dealing with Lenders in such situations is “communication”.  Often your separation will impact on your immediate cash flow / budget. It may be necessary to discuss short term payment arrangements with your Lender. Any agreed arrangements along these channels would not bring about an event of default impacting your credit file.  Many home loans can have redraw arrangements and it may be possible to utilise surplus funds available through redraw to assist with changes to your budget. Should I pay my Home Loan if I am no longer living at the property ? In short. Yes.

4. Are you maintaining your Credit Rating during Separation ?  Changes to the Privacy Act from March 2014 include a more comprehensive level of credit reporting from Lenders to Credit Agencies. In some areas of the market, this has been dubbed as ‘Positive Credit Reporting’  Going forward, the new information held on credit reports may include loan payment history for a rolling two year period. This will mean that Lenders will now be able to see a clearer picture of your ability to meet financial commitments as opposed to the past regime, where they were limited to seeing defaults or other serious infringements only.  For more information, consumers can obtain information on the Privacy Policy changes at www.creditsmart.org.au. www.creditsmart.org.au Recent changes in credit reporting laws. How they impact on you. An overview of ‘Positive Credit Reporting’. If you miss payments or are late with payments through your property settlement period, this can be visible to Lenders and impact your future borrowing ability.

5. Are you maintaining your Credit Rating during Separation ?  Often in times of separation their may be periods of high conflict or hostility. In these situations it is important to take reasonable steps to protect your assets.  Depending on the level of co-operation with your former partner, it could be advisable to have your banking arrangements changed so that two signatures are necessary for any withdrawals. This will assist protect any savings in bank accounts or redraw funds in mortgage accounts.  Further, ensure your property remains adequately insured to protect yourself from any property damage. It is often a condition of insurance that you inform your Insurer should a home be vacant for an abnormal period of time.  Should one party not co-operate with shared payment arrangements, then consult with your legal adviser for available options. What you need to do when conflict arises Key word is ‘Communication’ The actions (or lack of action) from your former partner could seriously damage your credit rating.

6. Are you maintaining your Credit Rating during Separation ?  In the first instance it is necessary to ensure that existing finance providers are informed of any likelihood for late or missed payments.  Lending options are best designed around your personal situation. Where home ownership is involved, accessing a qualified Mortgage Broker can normally provide you with an overview of available loan facilities across a multitude of lenders to suit your new situation.  Early discussions are encouraged, however it is often necessary to finalise the Property Settlement process before implementing solutions.  Other types of Financial Advice that you need to consider in these circumstances may be;  Financial Planning advice (amending binding beneficiary nominations with Super funds).  Insurance Brokers. Transition policies to single ownership and review amounts insured.  Solicitors. Update you Estate Planning with any required changes to your last will and testament. Types of financial advice available In times stress and emotional situations, often the simple things can be overlooked

7. Are you maintaining your Credit Rating during Separation ?  It is most likely that if you are considering separation that you have already had discussions with a Family Lawyer (or equivalent) in regard to arranging a suitable property settlement.  Where children are involved, suitable custody arrangements are also paramount.  Where Home ownership is involved, it is important to understand what your borrowing capacity would be when viewed as a single applicant for loans.  It is recommended that you seek an early discussion with a qualified Mortgage Broker in regard to your most likely financial situation post your property settlement. Mortgage Brokers generally operate on a relationship basis and will be happy to work with you as you go through the separation transition. Where to from here Is Home Ownership involved ?

8. Are you maintaining your Credit Rating during Separation ?  Ken owns and operates his own Mortgage Broking Business in Western Sydney. The business has been operational for just over two years, following a career in Banking and Finance  With today’s modern technology, location is not an issue for seeking out advice. With the use of the internet and applications such as Skype, face to face interviews can be performed at any point around the Country.  Ken has a small team of qualified Mortgage Brokers that will be able to assist with your home ownership needs in a post separated environment.  Ken has also gone through a marriage breakdown and his own personal Property Settlement. Ken has a good understanding of the issues involved in re-establishing yourself in a post separated environment. About the Writer Kenneth (Ken) Olds P.O. Box 252 Doonside NSW 2761 0418 22 88 35 ken.olds@finsure.com.au http://www.finsure.com.au/b roker/kenneth-olds Please call or email to obtain a Customer Information Form to allow assessment of your position. A Consultant will be in touch with you.