Financial Planning can help you navigate your divorce with confidence

There are many facets to the divorce process and one area that can’t be ignored is financial planning for divorce, especially when it comes to untangling shared assets and planning for your financial future. As such, it is very important that expert financial guidance is sought to promote informed decisions in respect of the appropriate split of assets.

Among the key considerations during divorce is the division of pensions.  According to Which Magazine in 2022, 7 in 10 divorcing couples don’t share pensions which could leave a spouse on a financial cliff edge in later years. This is not uncommon amongst married women who tend to have smaller pensions because they have had a career break to look after a family.

At a time of change, having a reliable source of independent financial advice is invaluable. As one of a relatively small number of female independent financial advisers and a member of Resolution, a community of family justice professionals who work with families and individuals to resolve issues in a constructive way, I often work with women going through divorce. Sadly, in my experience many women have not been actively involved in the family finances and therefore there can be a huge knowledge gap of the finances at the time of separation.

For those of you considering divorce or in the process of divorcing, here are a few of my top tips to help:

1. Take your time. Make sure it is what you want, it’s a big decision, life-changing and one not to be taken lightly.
2. Understand your finances. It’s important to get current values of your matrimonial assets including property, pensions, savings, investments, business interests and chattels.
3. Consider your housing requirements. What are your needs, if you have children how much time will they spend with you, are you the main carer?
4. Consider how much income you need to fund your lifestyle by breaking down your expenditure into essential, lifestyle and discretionary. A cash flow forecast using reasoned and reasonable assumptions can provide you with a good understanding of your expenditure needs over time.
5. Consider mediation. This keeps the line of communication flowing without lawyers’ letters. If you can agree on a fair solution via mediation, it will save time, legal fees, and help keep relationships more positive.
6. Consider using an online divorce service. Companies such as amicable provide expert divorce coaches and can work with you as a couple. Again, this can help you save on legal fees and time.
7. Consider your children, put them first, you will always be their parents even if apart.
8. Consider self-care, ensure you have someone to talk to, surround yourself with those that are supportive. Every divorce outcome is different, so don’t take too much heed on what other people say about their own divorce experience.
9. Take legal advice if you feel the amicable route is not going to be an option. Make sure you appoint a lawyer, preferably one who is a member of Resolution, you can work with, it can be a long journey.
10. Negotiate from a position of knowledge, not emotion. Understanding the process of divorce and gaining a handle on your finances will place you in a stronger position and save time.

If we can be of help please contact us to schedule a meeting with Louise; you can book here, email: louise.oliver@piercefield.co.uk or tel: 0345 2578749.