With couples locked down together for months on end whilst juggling work and possibly home schooling, the past year has sadly put huge strain on many relationships.
With a post-lockdown divorce boom predicted by many family lawyers, it’s tricky to know where to start regarding the division of finances.
On divorce, a couple need to decide how to fairly divide financial assets including their home, money in current and savings accounts, pensions and investments. They may be entitled to a portion of their ex-spouse’s pension or a share in the sale of their property, for example. They may also have to make decisions about the value of maintenance payments to maintain their and their children’s lifestyle. Heightened stress and reduced financial circumstances caused by the pandemic may make coming to an agreement more challenging. If they are unable to agree, they may still be able to settle out of court by hiring a trained mediator or collaborative lawyer. If not, they may have to ask a court to decide.
It’s good to talk
We understand this is a challenging time and can help guide individuals through how to best invest the proceeds of a settlement, divide assets tax-efficiently, set up comprehensive protection cover and manage their post-divorce expenditure.
The value of investments and income from them may go down. You may not get back the original amount invested. A pension is a long-term investment. The fund value may fluctuate and can go down. Your eventual income may depend on the size of the fund at retirement, future interest rates and tax legislation.