Navigating Divorce: Why early financial advice is essential
Divorce is one of the most emotionally and financially challenging life events a person can go through. While legal proceedings and custody arrangements often take centre stage, the financial implications of divorce can have a long-term impact on your future. That’s why speaking to a financial adviser early in the process is not just a good idea—it’s essential.
Too often, people seek financial advice after the divorce settlement has been agreed upon—sometimes when it’s too late to make necessary changes. Engaging with a financial adviser at the outset ensures that you make informed decisions from the start, protecting your financial wellbeing in the long term.
Understanding the full financial picture
One of the biggest challenges in divorce is understanding your financial situation. Many couples have joint assets, shared debts, pensions, business interests and investments that need to be divided fairly. A financial adviser can help you get a clear picture of your individual financial standing, ensuring that you make informed decisions about your future.
Making informed settlement choices
Divorce settlements can be complex, and emotions can sometimes cloud judgment. A financial adviser will help you assess different settlement options and their long-term consequences. For example, retaining the family home may seem like a priority, but is it financially viable in the long run? A professional adviser can help weigh up the pros and cons, ensuring that you secure a settlement that works for you, not just now but for years to come.
Creating future financial well-being
A divorce doesn’t just divide assets—it can also impact your income, your business, retirement plans, and tax position. A financial adviser will help you restructure your finances, ensuring that you have a solid plan for rebuilding your wealth post-divorce. Whether it’s managing investments, setting up new savings plans, or reviewing pension contributions, professional guidance is invaluable.
Inheritance tax planning and your children’s financial future
Divorce can also impact your estate planning and the inheritance you wish to leave for your children. Without proper planning, your assets may be subject to inheritance tax or distributed in a way that doesn’t align with your wishes. A financial adviser can help you structure your estate to minimise inheritance tax and ensure that your children receive their intended inheritance. Setting up trusts, reviewing wills, and establishing legal protections can provide peace of mind that your children’s financial future is secure.
Mortgage affordability
If you are considering purchasing a new home post-divorce, understanding your borrowing capacity is crucial. Our dedicated mortgage team can provide expert guidance on your mortgage options, helping you determine what is financially viable and ensuring you make informed decisions about property ownership. Engaging independent mortgage advice can help you secure the right deal; plan effectively and prove your borrowing capacity for your new financial future.
Take control of your financial future
Divorce often means adjusting to managing finances alone. For those who were not actively involved in handling household finances, this transition can be daunting. A financial adviser provides the support and knowledge needed to regain financial independence and confidence.
Avoid costly mistakes
Without professional advice, it’s easy to make costly mistakes during a divorce—whether it’s undervaluing an asset, navigating complicated tax implications, or agreeing to an unsustainable financial arrangement. A financial adviser acts as an objective guide, helping you avoid these pitfalls and plan pragmatically for the future.
Too often, people seek financial advice after the divorce settlement has been agreed upon—sometimes when it’s too late to make necessary changes. Engaging with a financial adviser at the outset ensures that you make informed decisions from the start, protecting your financial wellbeing in the long term.
There is no charge for an initial conversation with our specialist teams, so if you’re going through a divorce, now is the time to seek professional financial advice to safeguard your future.
Create a clear action plan
- Book an initial consultation – Our specialist teams offer a no-cost initial conversation to understand your financial position and needs. We can do this confidentially and meet online or in person.
- Assess your financial situation – We will help you evaluate assets, debts, pensions, and investments to ensure you have a clear picture of your finances.
- Consider your mortgage and housing options – Our mortgage experts will assess your borrowing capacity and help you plan for your next home.
- Plan for the long term – From pension sharing to inheritance tax planning, we will create a structured plan to secure your financial future.
- Implement your financial strategy –We can enact any of the financial arrangements that come as a result of the divorce including Pension Sharing Orders. With our guidance, you can confidently take the necessary steps to safeguard your financial well-being post-divorce.