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Separation or divorce
– daily banking and property

You have probably had shared finances and now, with the separation or divorce, the situation has changed. Understand your situation as soon as possible.

Housing is a great expenditure for anyone and, in case of separation, there is a risk for financial imbalance if you do not quickly find a working solution for housing. Although you are dealing with it alone, you may be in a good position to get yourself a home and you may have more options for solving the situation than you think. Have a word with our loan expert before you make any decisions.

Daily Banking

  • 1. Finances in balance

    There are always two sides to finances – income and expenses. When the shared finances of two people become the independent finances of two independent people, it may initially be difficult to understand the expenses that your household will have in the future. We recommend that you prepare a budget for yourself. When you know the sources of income and the expenses you have, you will have fewer things to worry about.

    You need to worry less about remembering the invoices if, for example, you start using e-invoicing and have the invoices debited automatically on the due date.

    Handy tools are available to you that will help you with stretching the money. With mobile banking, you can monitor the balance of your account whenever you have your telephone with you. eBanking also contains an overview of your income and expenses where you immediately see, for example, your monthly food expenditures.

    Budget calculator (in Finnish): Plan your budget (XLS)
    The separation will probably also affect the social benefits that you may have.
    You can check how the situation affects your benefits with Kela: kela.fi.

  • 2. Housing

    Housing is a great expenditure for anyone and, in case of separation, there is a risk for financial imbalance if you do not quickly find a working solution for housing. Although you are dealing with it alone, you may well be in a good position to get yourself a home and you may have more options for solving the situation than you think.

    Have a word with our loan expert before you make any decisions.

    Learn about housing options: Buying a home.

  • 3. Sort out the accounts

    Sort out your banking to reflect the new situation quickly, especially if you or your spouse have had shared accounts or cards. It is recommended that you make accounts and cards personal.

    You may have to order new cards in case of separation, if your name is changed.

  • 4. Review the savings and savings plans

    Check any savings accounts and savings plans that you may have and make sure they are registered to the correct person.

    Also make sure that your insurance policies correspond to the new situation and provide sufficient coverage.

  • 5. Finances of the children

    It is advisable to agree on the finances of the children and sort them out as soon as possible.

    If you will have shared custody, the custodians’ shared right to use the children’s accounts and assets will continue even after the divorce until the child turns 18. A single parent has the sole right to access the children’s accounts and assets. If you want to agree otherwise, both parents need to provide their consent.

    If you have savings for the child’s future, you should hold onto them even after the separation. Accruing a nest egg for the child and providing financial security is an investment in the child’s future.

Property and divorce

  • 1. Distribution or separation

    Marriage constitutes marital right to the property of the spouse. However, the marital right will not become effective until after the end of the marriage, either by divorce or the death of a spouse. A marital contract can exclude the marital right, either partially or completely. A marital contract may make it easier to divide the property in case of a divorce.

    The property can be split up, i.e., distributed, once an application for the divorce has been filed. If the spouses have no marital right to each other’s property, for example because of a marital contract, separation is done instead of distributing. All matters related to dividing up the property should be handled as soon as possible.

    If the parties can reach an agreement on how to divide up the property, they can handle the distribution by agreement. The alternative to this is to get a court-appointed executor to perform the distribution between the spouses. Even in case of distribution by agreement, it is advisable to rely on the help of a lawyer specialising in family law when managing the issue and preparing any documents that have formal requirements.

    In the distribution, the property of the spouses subject to marital right is split in half and the spouse that owns more will provide the other spouse with property adjustment.

    When it comes to shared debt, home credit, for example, you will need to agree with the creditor, such as a bank, about the future. A divorce does not automatically convert shared debt into personal debt. Neither does performing the distribution have an effect on this. Rearranging the loans may mean that the payment plan or instalment method of the loans is changed.

    It is recommended to make sure that any agreements and, for example, a will or a continuing power of attorney are updated after the divorce to reflect the changed situation.

  • 2. Housing after divorce

    If you have a shared home that you own together, you can agree that one of you will redeem the share of the other spouse and will continue living there. Naturally, it is required for such redemption that the other spouse has the financial capability to do so.

    If no agreement can be reached regarding the home, a court-appointed executor can obtain a permission from a district court for selling the home. In this case, the home is sold to an outside buyer. When the home is sold, any loans burdening it are paid off and any remaining amount of money is typically split according to the shares of ownership. 

    Come talk to us about buying a home. You can also apply for chargeable loan guarantee, which may eliminate your need to ask for additional collateral from your parents, for example.

  • 3. Dividing up the property after the end of cohabitation

    Even long-term cohabitation does not provide a legal claim to the other person’s possessions the same way as is the case with married couples. On the other hand, it is possible to prepare for the separation with agreements.

    Often the greatest question is the dividing up of the shared home. In practice, there are two options: a partner redeems the other partner’s share of the home, or the home is sold just like in case of divorce.

    It is also recommended to make sure that any agreements and, for example, a will or a continuing power of attorney are updated after the separation to reflect the changed situation.

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