It is a given that unfortunately a number of marriages will end in divorce and there is no doubt that during those difficult times, the process can get very complicated. 
2022 saw a surge in divorce applications.

Along with legal advice, independent financial advice can give you the information you need to contribute towards achieving a fair, realistic and practical financial outcome.

When you divorce or end a civil partnership you and your ex-partner need to agree how to separate your finances.  This includes deciding how you’re going to divide:

Pensions
Property
Protection
Savings & Investments

How independent financial advice can help in divorce

Independent financial advice is extremely valuable throughout the process of divorce and should be obtained in addition to legal advice. We can help you with

Pensions

A pension can be one of the biggest financial assets that a person has, so it’s important to take them into account when agreeing a divorce settlement – particularly in cases where both spouses are retired.

You may receive or be required to give, a share of your/your partner’s pension – including State Pension or private pension plans, this is known as a Pension Sharing Order.

The average age of a couple getting divorced has risen, and this has created a greater emphasis in recent years on pension assets.

An older couple are more likely to have greater pension values and issues can arise when one person holds the larger pension pot.

We’ll help you to see a clear way ahead, looking at your pension as a whole and advising you on a way forward.

Initially we can help you find the value your pension/s and once a Pension Sharing Order has been issued after the final order of divorce, there are a number of steps that need to be taken including sending documents, responding to requests and paying the pension sharing fees.  We’ll guide you through these stages.

Property and Protection

Our advisers can look at your current joint property and your mortgage options should either partner choose to stay in the property.

You need to consider that the value of this asset often means that by one partner staying in the family home, they will have to sacrifice the other assets such as savings and pensions.

Where life insurance is concerned,  your policy may have been set up as joint with a partner and in the case of divorce this will need to be amended.

If you have two individual life insurance policies, this will make things simpler in the event of a divorce. Check to make sure your policy still provides the financial cover you require with your changed circumstances. Consider changing your life insurance beneficiary before, during or after the divorce if you no longer want your ex-partner to benefit from a payout should the worst happen.

If you have joint life insurance it may be possible to separate it into two policies, although this option isn’t available with every company.

In the event that your insurer doesn’t allow you to separate the two policies, here are two options:

1. One of you takes over the policy while the second person arranges a new policy for themselves.
2. You cancel the policy and take out a new single life policy suited to your changed situation. However, premiums could be higher due to age and you may need to go through additional health checks before a new policy is agreed.
   
   

Other factors which need to be considered include:

One of you depends financially on the other.

You have children who still depend on you financially.
One of you has given up work to raise your children, affecting your ability to earn.

One (or both) of you owns a business.

One of you has a medical problem or disability that affects your ability to earn an income.

One of you has more assets than the other – for example, the house is in one name, or one of you has a bigger pension than the other.

Future

Your adviser can also help you see a way to move on in your new life by assessing your post-divorce income and expenditure situation (cash-flow and budget analysis), advising on a new mortgage and generally helping you rebuild your finances.

Other Costs

It is not only the money and assets being divided that need consideration.

The financial implications and the cost of divorce itself should not be underestimated.

Financial planning for legal fees and other related costs will be a helpful exercise early on in ensuring both spouses have sufficient funds to see out the process.

If you are about to start divorce proceedings, considering it, or need advice following a divorce, our knowledgeable and friendly advisers can help you. 
Your first consultation will not cost you anything so it really is worth getting in touch.

Call us on 01753 837950 or email enquiries@manningandco.co.uk.