With the no fault divorce coming into place on the 6 April 2022 under the Divorce, Dissolution and Separation Act 2020, it is important more than ever to protect your finances when divorcing from your ex-spouse.
No matter what your financial situation is, it is sensible to take action to ensure you have a stable future ahead. It is also very important to fairly divide all assets between the two parties. This includes any savings, pensions, houses, debts, and inheritances that you may have.
Protecting your money in divorce can be made much easier by having the right information and strategies in place. Naim Qureshi, Senior Associate in the Family & Divorce team, outlines key things to consider.
Talk to a professional
A divorce lawyer and a specialist independent financial adviser (IFA) can offer advice on how to best safeguard your money throughout your divorce process and offer some guidance along the way.
Know the value of your assets
Make sure you understand and do not guess the value of things such as your home, vehicles, and other assets. Outlining these before the divorce process begins will help to move things along and will allow you to understand how much money truly exists between you and your ex-spouse.
Never hide your assets
This is a mistake made by many and can often backfire. If you hide your assets you could be faced with a monetary fine and can lose credibility with the court. Being honest from the beginning will help you in protecting your finances.
Update your beneficiaries
It is common to have your partner named as your beneficiary on things like insurance policies, wills and trusts. Make sure to update these in advance to protect your money from going to someone that you no longer want in the future.
Time is of the essence
The longer the gap between the Decree Absolute or what is now known as the Final Order and the financial settlement, the more complicated it becomes to resolve. In some circumstances things can change like the sudden death of an ex-spouse.
If finances aren’t resolved it can quickly turn into a very complex case. Your claims against their estate will become weakened and any pension entitlement may fall through.
Take care of your wellbeing
Letting emotions get in the way of making smart decisions during your divorce can end up costing you. Reach out to a counsellor or a therapist who can help you work through your emotions and teach you coping strategies.
How we can help
The above covers only a few important points to keep in mind to help protect your money in a divorce, but there is much more you can do.
For further information or advice please contact Naim on 01494 781356 or email naq@blasermills.co.uk.