Money Talk
Consumer expert Sue Hayward’s savvy finance tips and advice
Sue’s Guide To Taking the financial pain out of divorce
Splitting up can mean an emotional cost, but the added financial impact of a split can be high; and that’s just in legal bills. According to the Money Advice Service, a divorce can cost as much as £30,000 if it goes all the way to a final court hearing.
There are ways to try and make it less financially painful, according to Hargreaves Lansdown, who’ve come up with some cost-cutting advice.
Emergency budget – if you’re dividing things up and trying to cover bills, you’ll need to know how much money you’ve got. Draw up an emergency budget to cut expenses as much as possible during the first difficult months.
Freeze finances – banks can freeze assets in joint accounts or you could arrange that you both have to agree to money being withdrawn.
Talking saves money – once solicitors get involved you can be looking at £200 an hour, so try and agree as much as you can directly between you, if possible.
Pension pots – these can be one of the largest assets built up during a marriage and there are several ways to split them. Don’t underestimate the value of a pension pot when doing sums.
Start saving – divorce is expensive and even once things are sorted, having to live on one salary or rent a property if you’re selling your joint home can make a dent in any savings. If you can, put money aside in an instant savings account or cash ISA for emergencies.