By Mary Green
No-one can say that the pandemic has been easy on relationships, trapped at home with someone 24/7 can drive even the most easy-going of us up the wall. The sad fact is that not all those relationships survived. I have seen a significant increase in the amount of enquires I have received asking for financial advice around separation and divorce. February is a time for love and valentines but sadly not for everyone.
Financial Planning can really help in these situations, some of the main areas in which it can help are as follows:
A financial planner can help you establish your full financial situation, by reviewing all your financial information including those pension statements you have probably been shoving in a draw for years.
They can work with you to look in depth at your incomings and outgoings to establish the point at which you will be able to manage financially post-divorce.
A report can be completed to enable you to confidently negotiate with your soon to be ex in relation to the financial settlement. At Rosewood we use complex software to enable us to complete a full cash flow for you, this can then be used to create ‘What If’ scenarios to see if potential financial settlements will work for you.
It is important to realise that when the Decree Absolute comes through, that although this ends the legal contract of marriage, under English law it does NOT sever the financial ties between a couple. What this means is if you and your ex agree a financial settlement but do not get it approved via the court (a consent order) then there is nothing to stop either party changing their mind or just not abiding by the agreed settlement.
Remember there islife after divorce and a Financial Planner can also help you discuss your longer-term goals and aspirations and help you find ways to achieve them.
For more general information on divorce:
Get a divorce – GOV.UK (www.gov.uk)
A survival guide to sorting out your finances when you get divorced | Advicenow
Note that legal advice is important when divorcing and the above does not constitute legal advice. It is also important to note that your financial settlement can affect your entitlement to benefits so this also needs to be considered.
Investments can and will go up and down in value and you can end up with less than you initially invested.
