DP and our finances - concerned for future, where to get advice?

[EleventyTwelve]

We are not in the best situation financially. DP runs a small business which doesn't do brilliantly since he got knocked in the first crash but has been building up slowly but steadily since. I have caring responsibilities and physical issues which has affected the type of work I can do (and prone to suffer from anxiety and depression because of this) and now help DP on a part time basis doing admin and bookkeeping. I aim to start a bookkeeping course now that DCs are both at school. The aim for me is to expand my hours and take on a few bookkeeping clients.

We are in social housing and claim both tax credits and a small amount of housing benefit. DP is 100% trustworthy and is always passing money over whenever I need it, but I am concerned about how our finances are arranged and mine and the DC situation should anything happen to him as we don't have a joint account and we are not married.

Although I would like to, as I am sure MNrs would be really helpful, I feel uncomfortable going into more detail online - I really want to be able to sit down with someone wise who can advise us on the best way to sort our finances out. I have never had any financial advice and this feels a really ignorant question, but do financial advisors deal with things like this, as far as how to arrange your bank accounts for income and outgoings etc?

Would they also advise on how the DC and I could best be protected should anything happen to DP?

Or do they simply try to just sell us stuff?

Have you tried your bank for help with budgets and bank accounts?

Do you both have pensions, life assurance, have you made wills, do you have any income protection?

Financial advisors work either on a fee basis or commission.

Is it joint tenancy?

Would you consider getting married? Makes life a lot simpler if you have children together.

No we haven't tried our banks - mainly because of fear that they will start charging DP for a business account - he just runs through his current acc at the moment, but maybe we need to get over that.

And no, we don't have life assurance or private pensions (well actually I do have a stagnant one from 7 years ago when I used to work in the NHS - I have no idea what can be done with this - another thing I need to sort out serious head in sand). DP is under the impression we are too old for pensions . We don't have wills either.

I also seem to feel that if we are claiming benefits, surely we can't afford things like private pensions or life assurance, but maybe I need to adjust my thinking around that.

I think one of the issues is that DP's income is so erratic, we had considered setting up a joint account and he paying in regularly, but not sure that is possible really. It's often a case of feast or famine but he does cover the household bills.

We have considered marriage, but never seem to get around to it, but yes I am fully aware that that would make things simpler. I am stubborn would rather we got married because it was the right time for us, rather than solely because it would sort our finances out though!

We are joint tenants and claimants (except CB which comes to me) and all benefits come into my account.

So as a prelim list of things we need to do, does this sound about right?

1. Wills - (where do we start?)
2. Speak to our banks re: accounts and budgeting and see which would give us a better deal
3. Look into Life assurance and pensions (again, where to start?)
4. Get married! (Give DP a big nudge )

If the business is not running well you may need some outside help from an adviser to help with the business plan. The first crash was eight years ago now so, if things still haven't recovered, maybe he has to accept it's just not a viable business and look for an alternative?

As to how accounts are arranged, there are lot of different answers and personal preferences. However, from experience I would say it is vital to keep household accounts and business accounts separate. Whether joint or individual, household accounts need a regular amount going in each month rain or shine because that's the way bills are organised. Business accounts can be very up and down.

If you are feeling insecure about finances generally then it is important to talk about things like insurance, inheritance and what would happen if you were to break up. As a PP says, you could get married. If you don't want to marry, you can set things up like wills with a solicitor.

The cheapest way to get legal protection is to marry.

Have you tried the money advisory service? HERE Free and impartial.

I wouldn't use a financial advisor as they will ultimately be looking to sell you a 'product' rather than just give general advice as that is their living...

Getting married will be the cheapest and quickest thing you can do to give yourself and your DC protection if anything happens. Get to the registry office and do the party when you can afford to.

There is the government money advice service (MA?) that advertises on TV.

It is definitely not too late for a pension. If you have DC young enough for CB, you will be here for a longtime yet. Have you also been contributing NI? Make sure that you do that.

Thanks for all the replies. I started paying NI again when I registered self employed (I had another client for a while as well as DP, and hope to again). I will definitely carry on with this now, regardless of my income.

DP's business is a tricky one, a significant part of his work came from a single source which took a big hit (manufacturing) and he arranged the rest himself. The manufacturing side is definitely on the up again and there are some hopeful talks taking place at the moment. He has never advertised and works on word of mouth for the rest of his work, so we will attack this with a vengeance if the manufacturing development doesn't come off.

It would be really difficult for him to do anything else tbh, he works very hard but his skills and experience are quite specific and unfortunately he is lacking in qualifications having left school at 16. I on the other hand am fairly well educated, but circumstances are such that I cannot take on a large amount of responsibility without feeling I am constantly letting people down and needing to explain why (difficult family circumstances, very emotionally draining).

Bookkeeping on a freelance basis will hopefully give me the flexibility I need and is less emotionally draining than my previous work.

The Money Advice Service looks fab - I will get in touch asap - thank you