March 2024
Divorce can be emotionally and financially draining, but a trusted financial adviser can provide expert advice on the long-term financial implications of separating.
Typically, divorcing couples only consult financial advisers after agreeing to a settlement. 40% of all people who divorce think the process ends up being financially unfair, yet only 7% seek financial advice (Legal and General).
By consulting a financial adviser early, they can help you to make crucial decisions.
A 50/50 split of assets sounds fair on paper, but this is not always the case. It’s likely that a couple’s future potential earnings and pension savings will differ post-separation, due to differences in careers, responsibilities and obligations.
Despite being such a large financial asset, pensions aren’t always valued correctly in divorce proceedings; a financial adviser can ensure they are.
Dividing cash savings is typically more straightforward than pensions. They often involve a simple transfer from one account to another, but ISAs often need different considerations.
Dividing investments can sometimes invoke tax liabilities e.g. Capital Gains Tax (CGT), so tax-efficient planning can help avoid charges.
Reviewing your financial objectives and lifestyle is a necessary step after divorce too.
It’s still possible to have a review with an adviser after a divorce or separation if you haven’t yet reached a legally binding agreement. You’d be surprised how many don’t realise this.
A cash-flow planning session – which assesses your assets, income and expenditure over time – can help establish realistic aspirations and investment decisions following a lump sum payment, or plans for any future funds.
Divorce is never easy. Involving a financial adviser early can help ease the process and find the best possible solution.
If you would like to speak with one of our experts, message us or call us on 01480 869466 for a free initial, no obligation chat.
Future fees may apply. Registered and regulated by the FCA No. 526604.
