THE FOUR WAYS TO TAKE CONTROL OF YOUR FINANCES IN A DIVORCE

SADLY, the start of a new year is often a time when couples decide to part, and the added stresses and strains of the pandemic may well have brought matters to a head for some.

While a divorce is bound to take an emotional toll, there may be some practical steps that people can take with their finances which may at least help the process to go a bit more smoothly.

Consider your finances in the future, as well as now

Emma Hammond, a financial planner at Charles Stanley, suggests creating a full list of assets and needs, as well as projected budgets for the future.

She says factoring in additional costs that may involve children or other dependants can be a big help when putting a financial agreement in place.

As well as potential future expenses such as school fees, thinking about the future cost of moving or buying a new home can also help.

Make sure you’re clued up about your household’s finances

One partner may have more knowledge than the other about a family’s finances, perhaps because of interest or knowledge, or because one person has always been more proactive about taking care of the bills and budgets.

After a divorce, the less experienced spouse might not understand how or what they should be doing financially.

Emma says making sure you have the financial support and education needed will help you now and in the longer-term.

Some people may want to consider taking financial advice if they are sitting on a lump sum of cash or assets, to help them ensure their long-term financial goals and income needs are met.

Consider putting a will in place or update an existing one

The people you want to leave your money and assets to when you die may well have changed in light of a relationship break-up or divorce.

Don’t forget about pensions

Zoe Bailey, a chartered financial planner and director at Tilney, says: “While people might just have an eye on the seemingly biggest financial assets, like the family home, it’s vital not to forget pension pots.

“This can cause even greater financial damage if not prioritised or divided in the best way for both parties, potentially leaving one of you at risk in the future.”