3rd October 2023
Money and Divorce
UNTANGLING YOUR FINANCES AND NAVIGATING THE FINANCIAL ASPECTS OF DIVORCE
Divorce is a complex process that often comes with various financial considerations, and preparing for a divorce is undoubtedly challenging, especially when it involves untangling your finances. The emotional strain can make it difficult to make clear-headed decisions and the long-term consequences may not be immediately apparent.
It is crucial to carefully consider the financial aspect of divorce to ensure you sustain the lifestyle you desire post-separation. It’s desirable to seek legal and financial advice from professionals specialising in divorce cases. Our team is here to assist you in navigating the financial aspects of divorce.
HERE ARE SOME FINANCIAL CONSIDERATIONS
CREATE A LIST OF ASSETS
Create a comprehensive list of all assets, including properties, pensions, investments, businesses you own and other financial accounts. Include accurate valuations and be sure to note down both joint and individual assets. Additionally, document your income and outgoings, both joint and individual, to clearly understand your financial standing. This will clarify what needs to be divided and help with accurate valuation.
BUDGET FOR THE FUTURE
Consider your post-divorce financial goals and plan accordingly. Start saving and budgeting in advance to align with the life you envision for yourself after the divorce. Remember that what you desire financially from the divorce may not necessarily align with the outcome. Obtain a copy of your credit report, especially if you anticipate needing a new mortgage or taking on new financial responsibilities. A credit report will provide insight into any joint lending or liabilities you may still be responsible for after the divorce.
CONSIDER THE DIVISION OF YOUR HOME
There are several options for dividing your home, such as selling it, one partner buying out the other’s share or maintaining joint ownership until certain circumstances arise. It’s important to consider the financial implications of each option. Keeping the home may be challenging, especially if managing a mortgage repayments on a single income becomes difficult. Consult a financial professional to assess the financial viability of each option.
///CONTINUE READING THIS BLOG ON PAGE 13 (CLICK HERE)///
This article does not constitute tax or legal advice and should not be relied upon as such.
Your own personal circumstances, including where you live in the UK, will have an impact on the tax you pay. Laws and tax rules may change in the future.