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Making the right financial decisions during your divorce can be difficult, you may be worried about your future and how you will support yourself and your family. It can be a very emotional time, and ensuring you make the right decisions can be extremely stressful. Making sure you receive a fair outcome and protect your interests, whilst ensuring your future is secure is so important.
It can seem daunting having to make these types of decisions alone and obtaining professional, regulated financial advice might be very worthwhile. It will enable you to have a clear understanding of your current financial situation, along with a clear financial plan and way forward.
You’ll need to be realistic about your future income and expenses. That means putting a realistic budget in place so that you can make informed decisions about your future finances.
You shouldn’t overlook any tax implications based on any financial decisions you make. This is especially important if you are considering selling assets or transferring property.
One of the most important assets to consider is your pension. Pensions are often overlooked in divorce settlements, but they can be worth a significant amount of money and it’s vital that they are considered in any settlement.
There are several options for dividing pensions in a divorce, and the best option will depend on your individual circumstances. You may be able to keep your pension in its current form, or you may need to transfer some or all of it to your ex-partner, or you may be entitled to a share of your ex-partner’s pension.
This is a situation where professional advice may be beneficial. Before making any decisions about your pension, you should always make sure you fully understand all the implications of the choices you make. A pension is one of the most important financial assets you have, and you need to make sure that it is taken care of in your divorce settlement.
With careful planning and communication, you can make the transition as smooth as possible to help you move on with your life and a fresh start.
Here are some simple suggestions of things to consider which may help you make the right financial decisions during your divorce:
1. Get organised. Gather all of your financial documents, including tax returns, bank statements, and investment records. Having everything documented in one place may help make the process of understanding your current financial situation a little easier.
2. Make a budget. Once you have all of your financial information gathered, sit down, and create a budget. Be honest with yourself about your income and expenses. This will help you make informed decisions about your finances going forward.
3. Understand your rights. Speak with a lawyer to understand your rights and responsibilities during the divorce process. This will help you make decisions that are in your best interests.
4. Communicate with your spouse. If you have children, it is important to communicate with your spouse about financial matters. This can be difficult, but it is important to try to reach an agreement on child support and other financial issues.
5. Obtain professional financial advice. This will help ensure that you are making sound decisions with your finances during this difficult time. There are many factors to consider when going through a divorce. The advice will help you understand the financial implications of the decisions you make and provide guidance on how to best protect your interests.
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Making the right financial decisions during a divorce can be difficult, especially when it comes to pensions.
Please note: This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
Please note, The Financial Conduct Authority does not regulate advice on taxation.