The beginning of a New Year brings new opportunities and a chance to make a fresh start. For some, this may involve taking the first, often painful steps towards a new life and divorcing their partner. Law firms across the UK usually see a vast increase in divorce cases rising in the months of January and February.
The most common and overlooked mistake made by many is not protecting your finances and safeguarding your future. 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.
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. Pensions are also a commonly overlooked asset where professional advice is vital particularly given that pensions are frequently the biggest asset in a marriage.
Additionally, there are potentially tax consequences on divorce and dividing the assets and this should be considered at the earliest opportunity.
You may also hold joint assets such as businesses which makes things complex and will require detailed legal advice.
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.
Talk to a professional
A family and 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.
How Blaser Mills Law can help
Our team of family and divorce lawyers have the experience and skills required to ensure you achieve the best outcome.
Blaser Mills Law has an extensive network of third-party professionals such as psychotherapists, IFAs, and accountants that can be referred upon request. In addition, the team has two mediators which can help to work out child and financial arrangements following a separation, often this can be a far more cost-effective process although it may not be right for everyone.
We are offering a free 30 minute confidential consultation (*subject to availability*) to discuss your circumstances and explain how we can help, please do not hesitate to contact Naim Qureshi on 01494 781 356 or email naq@blasermills.co.uk.