Our economic outlook
16 April 2024
Finance and Divorce
At this difficult time, Monetary Solutions can give you expert guidance on finance and divorce
There are two legal aspects of divorce:
- The legal dissolution of the marriage
- The financial settlement
Overall, the number of divorces is declining, but the age at which people divorce is increasing. Generally, our assets increase with age. That means that there is more to share out and financial settlements have become increasingly complex.
You probably turn to a solicitor to deal with your divorce, but it’s important to seek specialist professional advice on the financial aspect – the amount you are awarded in your divorce settlement could increase because of it.
With that in mind, we work closely with a number of local solicitors.
These are the main areas where we can advise:
1.
Pensions
These days, pension benefits have to be considered as part of any divorce. Often, just the transfer value is taken into consideration, but this has limitations. It’s vital to seek advice on your own and your ex-spouse’s pension, to gain a true understanding of both. A financial adviser can make sure that the benefits are divided fairly and that you don’t lose out.
2.
Insurances
If your ex-spouse is paying maintenance, for example, it’s important to make sure there is insurance in place to provide cover if they die or become sick.
3.
Mortgage capacity
Often, the courts need a statement to confirm the borrowing capacity of each party. This needs to be assessed carefully, because if there is an error with this, you may have a problem financing a home at a later stage. We spend time to really understand the full situation, so we can make sure the mortgage capacity statement is a true reflection of what you will be able to borrow.
Note that it’s important to seek advice as early as possible in any financial settlement. Your first appointment is provided at no charge.