Going through a divorce or civil partnership dissolution can be a stressful and emotionally challenging time. While preserving your mental and physical health throughout the process is paramount, ensuring that your finances are also protected is important. In this blog, we’ll outline the key steps you should take to safeguard your financial future during a divorce.
Financial Disclosure
Once divorce proceedings have begun, both parties are required to provide full and frank financial disclosure. This means you’ll need to provide details of all your assets, income, debts and outgoings. It’s essential, to be honest and transparent during this process, as failing to disclose all your financial information can have serious consequences and will most likely result in the process taking longer and becoming more acrimonious.
Consider prenuptial agreements
Whilst prenups are not legally binding in the UK, if one was put in place at the time of the marriage (or shortly after in the form of a post-nuptial agreement), they can be taken into account by the courts if they are deemed to be fair and reasonable. Therefore, they can be a good place to begin the process of negotiating a fair financial settlement.
Legal advice
Divorce can be a complex and confusing process, so it’s important to seek legal advice from a specialist family law solicitor. They can help to guide you through the process, explain your legal rights and obligations, and help you to understand what you are entitled to try and achieve from a settlement. Having a solicitor to represent you through the process means they will be able to negotiate on your behalf, which may result in you obtaining a better settlement.
Financial advice
In addition to legal advice, it’s also worth seeking the advice of a financial advisor. They can help you to understand your financial options and make informed decisions about your future. They can also help you to plan for your financial needs after the divorce, such as budgeting, investing and saving for retirement.
Pensions
Pensions can be a significant asset, particularly where several years’ worth of pension contributions have been accumulated. It is, therefore, essential to consider how they will be divided. However, pensions are not always taken into account as part of a divorce settlement. How a pension can be shared will depend on a number of factors, such as the length of the marriage, the value of the pension, and the contributions made by each party. It’s important to seek legal and financial advice to protect your pension rights.
Securing a financial order
Couples need to secure a financial order once a divorce settlement has been agreed upon. This is a legal document that sets out the terms of the settlement and ensures that both parties are bound by its terms. It’s important to ensure that the financial order is drafted correctly and covers all the relevant issues, such as property, assets, and maintenance payments.
Protecting your finances during a divorce requires careful planning, legal and financial advice, and transparency around your financial situation. By taking these key steps, you can help safeguard your financial future and move on confidently. If you need legal advice or support during a divorce, our team of specialist family law solicitors are here to help.
Anthony Jones is Head of Family Law and is a Resolution Accredited Specialist. For help or advice, don’t hesitate to get in touch with him at 01457 761320 or email anthony@odonnellsolicitors.co.uk
