While getting divorced will inevitably be a difficult experience for all involved, it’s important to ensure the process goes as smoothly as possible in order to avoid any potential for financial meltdown.
Splitting assets
The starting point for any divorce is to calculate the value of net assets held by each party; this will include all cash, savings and investments, property and pensions. Although there are no hard and fast rules governing how assets are divided, generally speaking, the starting point is 50:50.
Family home
Perhaps the biggest decision any divorcing couple face is what to do with the marital home. There are various options including for one spouse to buy the other out and keep the house, or for the property to be sold with the proceeds divided. If children are involved, one parent will often want to stay in the family home with them; in which case, existing mortgage arrangements need to be reviewed, especially if the other partner wants to buy another property.
Planning for the future
As well as seeking advice from professionals during a divorce, it is also important to obtain financial advice relating to your new circumstances post-divorce. As a bare minimum, you should consider your financial goals and review your mortgage, life insurance, savings and investment plans, as well as rewriting your will.
It is important to take professional advice before making any decision relating to your personal finances. Information within this page is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK.
Will writing is not regulated by the Financial Conduct Authority.
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