You are here: Home - Saving & Banking - How to -

Financial tips for dealing with divorce

0
Written by:
05/01/2016
Here's how to ease the financial pain of divorce.

Calls to divorce lawyers spike by more than 25% in January, as many find that the forced proximity of the Christmas season definitely does not make the heart grow fonder.

The papers are full of million-pound divorce settlements, the reality for most people is more prosaic – halving a family’s wealth doesn’t buy very much for either side and divorce is often a financial disaster.

However, if the festive season has finally convinced you that there is no long any other options, there are a number of steps you can take to ease the pain of separation:

1) Avoid expensive lawyers. This is easier said than done, particularly for more acrimonious divorces, but you don’t need to involve lawyers – you can arrange everything yourself, or use an online service. Alternatively, you can use lawyers for only part of the process.

2) Using a mediator can help keep costs lower and resolve disputes. http://www.nfm.org.uk/.

3) Consider whether you need to keep the family home. There is an emotional attachment to the family home, but often it is easier to simply downsize rather than take the financial risk of trying to hang onto the house. Most would be better off ensuring that they have a solid income than a big house.

4) Check asset valuations – Both parties need to disclose their assets on divorce, but houses, stock portfolios and other assets can change in valuation materially over relatively short periods.

5) Change wills and pension/insurance beneficiaries

6) Check your insurance – you need to ensure that you are not paying for insurance cover you don’t need – expensive mountain bikes on household insurance, for example.

7) Take account of all debts – both parties can be held responsible for all debts in some instances, even those in their partner’s name.

8) Cut all financial ties as quickly as possible. Close joint bank accounts and open new ones and cancel joint credit cards.

9) Have an emergency fund – holding six months’ worth of income will make the whole process considerably less stressful.

10) Plan – create a budget and a financial plan.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

ISAs: your back-to-basics guide for 2018/19

Here’s everything you need to know to make the most of your unused ISA allowance ahead of the 5 April deadli...

A guide to Sharia savings accounts

A number of Sharia savings products have upped their game in recent months, beating more familiar competitors ...

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

  • 'Over the last year, the amount of money saved in Innovative Finance ISAs – or IFISAs – has increased by over 700%'- https://t.co/dPjhoorgPp
  • Sainsbury’s and Asda promise £1bn of lower prices if merger goes ahead - https://t.co/pf3D3sPOXb
  • Are you planning to make a last-minute investment into your ISA or SIPP during this tax year? Here are five tips to… https://t.co/lGjHix7F7y

Read previous post:
Over half of UK workers want a career change

Over half (54%) of British workers would like a career change, with the figure rising to 72% for those aged between...

Close