Your Finances and Divorce:
Download: Your Finances and Divorce
Download: Your Finances and Divorce
If you ask most people the most pressing concern of a financial adviser, they will probably say ‘money.’ That makes sense, right? After all, they’re money experts! But, in truth, our response would be a little different.
We’d say it’s about supporting you with more than just money – it’s about helping you fund your ‘best life.’ Every adventure; every lifestyle change; every legacy – right through to the tricky stuff of handling a loved one’s passing, staying strong throughout a pandemic, working your way through a divorce…
It’s always important to understand your financial situation. Only then can you have a solid base to build your future upon. But, it’s even more true when the chips are down. So, if you’re trying to fathom how your finances and divorce work together, our pointers below will give you an insight into what you might need to consider:
Prepare to see the Bigger Picture
When considering your finances and divorce, you will need to get to grips with your different assets, what they mean for you, and how they work. When it comes to divorce, this will be doubly important. A straight 50/50 split might mean you don’t receive an equal share of the assets over time – so your assets may be more complicated than you first assume.
Work out your cost of living
You’ll almost certainly know how much you get paid – but do you know where it all goes? Budgeting your money has so many advantages, but it will come into its own when planning a divorce. Defining a list of your income and expenditure will help you develop a realistic budget so that you know how you can cope for the future, and/or where to make cuts if necessary.
Who will keep the family home?
Discussions around keeping the family home are always sensitive, especially where children are involved. The key here is to think practically about your situation. Can you afford to keep it on your own? While you may be attached to your home, if staying means financial hardship, might you be better off making happy memories somewhere more affordable?
Costing a new home
If you need to move elsewhere, you will need to establish the facts. What will it cost? Do you want to stay in the area or is a break away for a completely new start on the cards? Work out your requirements and then scope out the cost to see what you can afford!
Pensions and retirement
Dealing with pensions during divorce can leave you feeling fraught. In England, any pension is deemed a marital asset – so, as you can imagine, this could be a contentious – and very likely complicated – area, when trying to agree a settlement. The good news is that there are financial specialists out there (like us!) who can help make sense of this complicated area. So, you can seek out a Resolution-accredited adviser who will be able to help you through.
Take some time to think about a settlement
Before you agree on a settlement, make sure you test what it means for you first. Will it enable you to afford everything you would like to do in the future? What does it mean for your retirement? What changes will you need to make? Etc.
Remember that everyone benefits from playing fair
Divorces can be messy, stressful and difficult. But, try to remember that everyone benefits from playing fair in the long-run. While getting one over your ex might help to soothe your bruised soul in the short-term, it’s likely to be the wider family (your kids!) who suffer in the long-term. Take a deep breath, and remember it’s in everyone’s best interest for sound financial decisions to be made for both parties. Solicitors who are member of Resolution promote a constructive approach to family issues that considers the needs of the whole family.
As we briefly alluded to earlier, there are financial advisers out there who can help sort your finances and divorce. So, if you would like to speak to our Resolution accredited adviser, Alex Welsh, please do give us a call on 01243 767 469. Alex will be happy to help!