financial planning

Why Proposed Reforms are Vital to Financially Protect Cohabiting Couples
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Why Proposed Reforms are Vital to Financially Protect Cohabiting Couples

Published on
Katie Jennings
Katie Jennings
Solicitor
Jones Myers

Jones Myers niche family law firm  has been at the forefront of ongoing campaigns to overhaul outdated cohabitation laws which currently do not give couples living together legal protection or rights if they split up.    

This is a far cry from the situation with married couples, who, on separation, are safeguarded in crucial areas such as savings, income, pensions, property, business interests, and their children’s future.

We therefore embrace proposals at the heart of a Government consultation which seeks to protect cohabitants who are parting ways in areas including financial remedies – and in situations when one of them dies without leaving a will.

As a specialist family law firm we are frequently instructed by clients – who have been cohabiting and are unmarried or in a civil partnership – and who are unaware that they have no automatic rights to their partner’s property or savings when their relationship breaks down.   

The current situation can cause even more uncertainly when there are children from the relationship. 

As we await the outcome of the proposed changes, we suggest that cohabitees in this situation  obtain advice about their protections under the law – ideally before they move in together – or at any stage of their cohabiting relationship. 

More couples are entering into Cohabitation Agreements which set out how financial matters within the relationship will be managed . The contracts are especially useful documents in circumstances where people already own assets in their sole names or have made purchases with contributions from parents or from inheritance. They provide an essential roadmap for them to follow should they split up.  

It is important that each party seeks independent legal advice and discloses all financial information in the lead up to signing the agreement, which should be reviewed regularly.

Entered into correctly, a cohabitation agreement is legally binding and can be used as the framework for a Prenuptial Agreement should marriage be on the cards. 

Jones Myers is committed to helping our clients navigate these issues, whether through our team of specialist family lawyers or through our experienced mediation practitioners. 

More on the Government consultation, which closes on August 14, can be found here.  

For queries on cohabitation agreements or any areas of divorce and family law, call 0113 246 0055 (Leeds) 01423 276104 (Harrogate), 202550 (York). Visit www.jonesmyers.co.uk, email info@jonesmyers.co.uk or tweet @helpwithdivorce

Jones Myers blog is ranked 5th in the 20 Best UK Family Law Blogs to Follow in 2026.

Read more articles by Jones Myers.

About Katie Jennings

Katie is a member of Jones Myers’ award-winning Divorce and Financial Remedies Department. A family law specialist skilled in litigation, Katie is also a family mediator currently working towards accreditation with the Family Mediation Council. 

Committed to reaching solutions which avoid going to court, Katie was drawn to Jones Myers’ standing as  a leading niche family law firm with a focus on resolving relationship breakdown through non-confrontational routes. Katie is based at the York city centre offices of Jones Myers at The Quadrant, Bootham Row.   

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Financial Independence After Separation: Three Steps to a Better Future
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Financial Independence After Separation: Three Steps to a Better Future

Published on
Elspeth Kinder
Elspeth Kinder
Partner & Joint Head of Family Law
JMW Solicitors LLP

For many people, the final divorce order or financial settlement is expected to feel like the finish line. It matters, of course: the marriage has legally ended, the financial arrangements have been decided, and the immediate uncertainty may have reduced. Yet this is often the point at which a different set of questions becomes louder. Can I manage the household finances alone? What needs to change now? How do I turn the terms of my financial settlement into a life that feels secure, manageable and genuinely mine?

As a family lawyer, I help clients protect their position and reach clear, workable outcomes. As a divorce coach, I also support them with what comes next: rebuilding confidence, making decisions, and moving from simply coping to planning ahead. That continuity is important. Legal advice and coaching do different jobs, but together they can provide a more complete route towards independence.

What is financial independence?

You may have a court-approved agreement but still feel unsure about its practical effect. Perhaps you have never managed investments, pensions, tax returns or household bills. You may be moving home, returning to work, adjusting to a different income or trying to make decisions without the person who previously dealt with the finances. Even where the outcome is fair, the transition can feel daunting.

Financial independence does not mean knowing everything immediately, nor does it mean refusing help. It means understanding your position well enough to make informed choices, knowing where to obtain specialist advice and developing systems that reduce uncertainty. For some, that begins with opening online banking without anxiety. For others, it means understanding a pension share, taking control of a business interest or deciding how to use a lump sum without rushing.

Step One: Implementing your order

A final divorce order ends the marriage, but it does not by itself resolve financial claims. Any agreement about property, pensions, lump sums, or maintenance should be recorded in a court-approved financial order. If you are uncertain whether this has been done, or whether every part of an existing order has been implemented, seek advice before assuming matters are closed.

Check the dates and actions within the order. Is a property transfer complete? Should maintenance payments be varied? Keep the sealed order, final divorce order and key correspondence together. If circumstances change, or the other person does not comply, take advice promptly rather than allowing problems to accumulate.

Step two: Turning your settlement into everyday life

Once you’re confident your settlement is properly recorded, prepare a clear snapshot of your new financial life. Record income, essential spending, debts, savings, pensions and insurance. Use these figures to build a realistic monthly budget rather than one based on an ideal month. Include annual costs such as car insurance, school expenses, holidays and home repairs. A separate contingency fund built gradually if necessary, can make unexpected costs feel less destabilising.

Next, review any practical arrangements that still reflect married life. This may include updating bank mandates, standing orders, credit cards and digital subscriptions, as well as checking who can access shared accounts or cloud storage. Where appropriate, update passwords and recovery details so that your personal and financial information remains secure.

Some financial decisions should not be made without specialist advice. Choices about how to hold or invest a lump sum, draw pension benefits, structure borrowing or deal with tax can have significant and sometimes irreversible consequences. A regulated financial adviser or wealth manager can help you understand the options, forecast future expenditure and test how different decisions may affect your income and capital over time. Taking advice at an early stage can help you avoid making rushed choices, use the settlement in a way that reflects your priorities and put in place a realistic plan for longer-term financial security. Your family lawyer can help identify when specialist financial, tax or mortgage advice is needed. 

Step three: Believe in yourself — and seek support when you need it

During divorce proceedings, there is usually a timetable and a professional team. Once the legal work ends, that structure can disappear almost overnight. Friends and family may expect you to feel relieved, while you may feel exhausted and overwhelmed by ordinary tasks. This is not a failure to move on. It is often the natural consequence of having spent months making high-stakes decisions while also managing work, children and emotional change.

Many of my clients find at this stage, coaching can be an invaluable tool. Coaching offers a confidential, forward-looking space in which to decide what matters now. It is not therapy, financial advice or a substitute for legal advice. A coach can help you break large problems into realistic steps, prepare for difficult conversations, recognise unhelpful patterns, set boundaries and remain accountable to the plans you have made. The aim is not to tell you what to do, but to help you recover confidence in your ability to decide.

Once the legal work has concluded, coaching can provide structure whilst you adjust to the practical realities of your new circumstances. This might include preparing questions for a financial adviser, setting realistic short- and longer-term goals, and developing routines for reviewing spending and progress. Coaching does not provide financial recommendations, but it can help you feel better prepared to engage with the appropriate specialists, make informed decisions and take greater ownership of your financial life.

Begin with the right next step

You do not need a perfect five-year plan. Begin by asking: what is still legally unresolved, what is causing the greatest practical pressure and what single action would give me more clarity this week? The answer might be locating your financial order, preparing a budget, booking an appointment with a financial adviser or simply creating a list of questions.

Divorce closes one legal chapter, but financial independence is built through the choices that follow. With the right legal foundations, practical systems and continuing support, the aftermath of separation can become more than an ending. It can be the point at which you begin to feel informed, capable and in control of your future.

Read more articles by Elspeth Kinder.

About Elspeth Kinder

Elspeth joined JMW Solicitors in May 2018 as a Partner and Joint Head of the Family Team. Elspeth is recognised as a leader in her field by the legal directories Legal 500 and Chambers and Partners for her experience in all aspects of the law relating to personal relationships:

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Looking Beyond the Settlement: Why Financial Planning Matters Early in Divorce

Looking Beyond the Settlement: Why Financial Planning Matters Early in Divorce

Published on
Damion Keyworth
Damion Keyworth
Financial Advisor
Perspective Financial Group Limited

Separation and divorce are among life’s biggest transitions. Alongside the emotional challenges come important decisions about your home, your finances and your future.

Over the years, I’ve had the privilege of helping many people navigate this journey. One thing I’ve seen time and again is that the earlier financial planning becomes part of the conversation, the more confidence people have in the decisions they make.

Many people understandably begin by speaking to a family solicitor. Legal advice is essential, but financial planning can add another valuable perspective by helping answer a simple question:

“Will the decisions I make today still work for me five, ten or twenty years from now?”

Looking Beyond the Numbers

A financial settlement may appear fair on paper, but that doesn’t always mean it will provide long-term financial security.

Two people may leave a marriage with assets of a similar value yet experience very different financial futures depending on their income, housing costs, pensions, tax position, childcare responsibilities and retirement plans.

This is where financial planning can make a real difference.

Rather than focusing solely on how assets are divided, we look at how those assets will support your life in the years ahead. Using cashflow forecasting, we can model different settlement options and explore what they might mean over the long term.

For example, it’s perfectly understandable that someone may wish to remain in the family home because it offers stability during an uncertain time. However, careful planning may show that maintaining the property could place pressure on future income or retirement plans. Equally, pension arrangements that seem reasonable today may have unintended consequences later in life.

Having this insight before decisions are finalised allows people to make informed choices with greater confidence.

Working Together for Better Outcomes

In my experience, the best outcomes happen when financial planning is introduced alongside legal advice rather than after most of the important decisions have already been made.

Family solicitors play a vital role in helping clients achieve a fair legal settlement. Mortgage advisers help assess borrowing options and affordability. Divorce coaches provide invaluable emotional support throughout what is often a very difficult period.

A financial planner brings these conversations together by considering how each decision affects your long-term financial wellbeing.

It’s not about replacing the expertise of other professionals. It’s about complementing it.

Bringing the Future into Focus

One of the most valuable tools available during divorce is cashflow forecasting.

Instead of focusing only on today’s assets, it allows you to see how your finances may develop over the next five, ten or even twenty years.

It can help answer questions such as:

  • Will my income be enough?
  • Can I realistically afford to keep my home?
  • When will my pensions become available?
  • How might inflation affect my future spending?
  • Will I have enough to enjoy the retirement I want?

Sometimes the analysis provides reassurance that a proposed settlement is sustainable. On other occasions, it highlights areas that may benefit from further discussion before agreements are finalised.

Either way, it gives people greater clarity at a time when certainty can feel in short supply.

A Collaborative Approach

One aspect of my work that I particularly enjoy is working alongside other professionals who support people through separation and divorce.

I regularly attend a local networking group where family solicitors, mortgage advisers, divorce coaches and other specialists come together to share knowledge and discuss how we can improve the experience for the people we all support.

Those conversations reinforce something I strongly believe: no single professional sees the whole picture.

When advisers work collaboratively, clients benefit from clearer communication, fewer unexpected issues and advice that considers both the immediate settlement and the life that follows.

After all, divorce isn’t simply a legal process. It’s the beginning of a new financial chapter.

About Damion Keyworth

I help people make confident, well-informed financial decisions so they can live the lifestyle they want — not just when they retire, but throughout life.

My approach:
• Listen carefully to your goals and priorities
• Clarify your current financial position
• Explore the lifestyle you have today and the one you want tomorrow
• Create a clear financial plan to bridge the gap
• Review regularly so the plan keeps working as life changes

“It’s not all about the money — it’s about lifestyle. Doing the things you want to do while you’re fit and healthy enough to do them.”

Only once we’ve understood your life and goals do we consider whether financial products are needed to support the plan.

I also specialise in financial planning around separation and divorce. Having written “Financial Planning & Divorce”, I understand how complex pensions, assets, and lifestyle choices become during this time.

My aim is to work collaboratively with solicitors, mediators, and other professionals to ensure clients make informed financial decisions at every stage of the process. If this is an area where you’d like support — whether as a client or a professional partner — please feel free to connect.

I’m a Pension/Retirement Specialist with over 20 years’ experience, a member of the CII, CISI and Resolution. Backed by Perspective Financial Group — one of the UK’s leading national financial planning and wealth management firms with 36 offices and 450+ staff — I bring both local understanding and national expertise.

You only get one life. Let’s make it count.

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Life After Divorce: Protecting Your Financial Future and Updating Your Will

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Rachel Miskin
Solicitor and Partner
Family Services Team
Bridge McFarland

Psychologists and researchers widely recognise divorce as one of the most challenging and emotionally demanding life events a person can experience. For many individuals, it is a deeply distressing process that involves a profound sense of loss, changes to identity and personal relationships, and significant social, familial, logistical and financial upheaval.

While the emotional impact of divorce is often the most immediate concern, it is equally important to consider the long-term financial and legal consequences. The decisions made during divorce proceedings can have a lasting effect on your financial security, estate planning and future wellbeing. Taking proactive steps at an early stage can help protect your interests and provide greater certainty as you move forward.

The financial aspects of a divorce can be particularly complex, especially where you and your former spouse are unable to agree on how matrimonial assets should be divided. It is a common misconception that the Final Order of Divorce severs all ties, but you will need a Financial Order to formally sever the financial ties between you and your former spouse. If you and your spouse can reach an agreement in terms of the division of assets a Solicitor can prepare the financial order for you reflecting that agreement. If you and your spouse are unable to agree the division of assets, in these circumstances, either party may apply to the court for a financial order, allowing the court to determine an appropriate settlement based on the specific circumstances of the case. However, court proceedings are generally more time-consuming, more expensive and often more stressful than reaching a negotiated settlement or resolving matters through alternative dispute resolution, such as mediation.

Protecting Your Financial Future

Once a financial settlement has been reached, it is important to ensure that your financial affairs are up to date and protected. The following steps can help safeguard your future after divorce:

  • Clean Break Order: Where appropriate, you can safeguard your future following a divorce by obtaining a Clean Break Order, a type of financial order that formally severs financial ties between you and your former spouse. A family solicitor can advise whether a Clean Break Order is suitable in your case and ensure that the order includes provisions dismissing future financial and inheritance claims. This provides greater certainty for both parties and helps prevent your former spouse from making a claim against your estate at a later date.
  • Review pensions and investments: Pension assets are often among the most valuable financial resources considered during divorce proceedings. If a Pension Sharing Order (PSO) has been made, it is essential to ensure that it is implemented correctly and within the required timescales. You should also review any remaining pension arrangements, investment portfolios and savings accounts to ensure they continue to reflect your financial objectives. Updating the nominated beneficiaries on your pension schemes is equally important, as these nominations may not automatically change following a divorce.
  • Consider tax implications: Be mindful of the Capital Gains Tax (CGT) implications of transferring assets following a divorce. Seeking professional legal and financial advice can help you understand your tax position and ensure that you make full use of any available personal tax allowances and reliefs. Careful planning can minimise unnecessary tax liabilities and help preserve your financial position.

 

Update Your Will and Estate Planning

When you divorce, you should also review and update your Lasting Power of Attorney and prepare a new will. Under UK law, a divorce does not automatically revoke an existing will in its entirety; instead, it generally treats your former spouse as though they had predeceased you, which may have significant implications for the administration of your estate. As such, it is important that you do the following:

  • Rewrite your will: Although a divorce generally treats a former spouse as having predeceased you for the purposes of an existing will, this can give rise to partial intestacy or other unintended consequences. To ensure your wishes are clearly reflected, it is advisable to prepare a new will that appoints your chosen beneficiaries, executors and, where applicable, guardians for your children.
  • Review other legal directives: You should also review and update any legal and financial arrangements to ensure your former spouse is removed where appropriate. This includes revoking or amending any Lasting Power of Attorney (LPA) in which they are appointed, as well as updating the nominated beneficiaries of any life insurance policies to reflect your current wishes.
  • Appoint trustees for children: If you have children under the age of 18, you should consider incorporating appropriate trust provisions and appointing legal guardians in your new will. This helps protect your children’s inheritance and ensures their financial interests are safeguarded until they reach adulthood.

Seek Professional Guidance

Divorce is rarely straightforward. Even where both parties remain amicable, legal, financial and practical issues can quickly become complex. Most divorces take between 6 and 7 months (around 26 weeks) to conclude, although more complicated matters involving finances or children may take considerably longer.

Seeking advice from an experienced family solicitor at an early stage can help you understand your legal rights, negotiate a fair financial settlement and avoid costly mistakes. Where appropriate, your solicitor can also work alongside financial advisers, tax specialists and estate planning professionals to ensure that every aspect of your post-divorce arrangements is properly considered.

With the right professional guidance, you can navigate the divorce process with greater confidence, protect your financial interests and establish a secure foundation for the future. Although divorce represents the end of one chapter, careful planning and informed legal advice can help ensure that the next begins on the strongest possible footing.

About Rachel Miskin

Rachel is a Solicitor and Partner at Bridge McFarland‘s Family Services team.

Rachel assists with a wide range of family matters including divorce and financial disputes following the breakdown of marriage or separating parties together with issues arising in relation to children. Rachel is a compassionate solicitor who deals with cases involving local authorities, providing advice and representation to parents.

Rachel is also proud to be heavily involved in the recruitment, development and supervision of Bridge McFarland‘s Trainee Solicitors.

Rachel is the Chair of Women in Business Hull for 2026.

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5 of the Most Expensive Divorce Mistakes

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Leah Hadley, AFC®, CDFA®, MAFF®
Founder and Senior Wealth Advisor of Intentional Wealth Partners and Intentional Divorce Solutions

The average cost of a divorce in the United States is between $15,000 and $20,000. High-conflict cases can exceed $100,000. With those stakes, knowing your financial priorities before settlement talks begin is essential.

While divorce rates are down, “Gray Divorce” rates are up. In fact, 36% of divorces are now in couples aged 50 or older. These are long term marriages where couples have built significant shared wealth, making the financial split more complicated.  A bad divorce has deep hidden costs that can ripple through your life long after the divorce is over. It can take years to recover in some cases, long, long after the ink has dried on your divorce decree.

All too often, I see clients make mistakes that have long term consequences. The true financial devastation of a bad divorce often lies in like the thousand little things that you don’t even see coming.

Here’s 5 Expensive Divorce Mistakes People Commonly Make:

1.   Not Understanding Tax Implications

Many people don’t understand the tax implications of divorce. Many of us are ready to pull our hair out during a normal tax season. But if you’re going through a divorce, it can get complicated.

Keep in mind:

  • Some account values represent pre-tax values and others represent after-tax values.
  • Dividing certain types of retirement accounts without a Qualified Domestic Relations Order (QDRO) can trigger additional taxes and penalties.
  • Alimony and child support are not federally tax deductible for the payer, and are not taxable income for the recipient. This varies with state income taxes.
  • You may be required to pay capital gains taxes on a house or stock sale.
  • Just changing your tax filing status to ”single” from “married filing jointly” will result in higher tax rates and lower deduction amounts.

These are not small details. They are decisions that can cost tens of thousands of dollars. All these factors need to be considered to ensure an equitable split of assets vs. just fair market value.

2.   Keeping a House They Could Barely Afford as a Couple

For many women, keeping the family home feels like the right move, especially when children are involved. Stability, familiarity, avoiding yet another upheaval. But the family home is often the single largest financial mistake after divorce that I see women make.

Here is the problem. The house comes with a mortgage, property taxes, insurance, maintenance, and utilities. All costs that were once shared. If your income cannot comfortably support all of those expenses on its own, the house becomes a financial trap, not an asset.

In addition, many women trade retirement assets for home equity during the settlement, not realizing that a dollar in a retirement account and a dollar in home equity are not worth the same thing. Retirement accounts have tax advantages and investment growth. Home equity is illiquid and fluctuates with the market.

Don’t trade away future financial security for a money trap.

3.   Focusing on Short Term Comfort Instead of Long Term Goals

This brings me to my next point. Be careful what you negotiate for that will make life easier now, but will set you back in the future. For instance, many women are willing to give up valuable assets in order to secure primary custody, or to keep the house, not fully understanding the value of what they are giving up.

Going through a divorce is also a very emotional time. I’ve seen clients who comfort themselves through retail therapy, which can lead to real financial damage. I’ve also seen clients who are so fearful of spending and investing in their career or education that they’ve eliminated support that could help them build wealth in the long run.

Try to focus on your entire financial future, not just the present.

4.   Not Truly Understanding the Value of a Pension

A pension earned during the marriage is marital property, which means it gets divided as part of the marital estate. But here is an important detail: only the marital portion counts. That is the value that built up while you were married. If your spouse had already been working and contributing to that pension for 10 years before you two got together, those early years are off the table.

There are also two ways to divide a pension in a divorce. The deferred distribution method splits the monthly payments when they actually come in during retirement. The immediate offset method means one spouse buys the other out using assets or cash at the time of the divorce.

Each approach has trade-offs, and the right choice depends on your full financial picture. This is exactly where getting the right advice makes a real difference.

5.   Assuming You Can Always Make More Money

As a final word of warning, don’t always assume you can make more money back if you give up valuable assets in a divorce. I’ve seen clients negotiate away retirement benefits and assets to get what they want in a divorce. Many of them assume that they have another 10-15 years to earn back money to use in retirement.

This way of thinking doesn’t take into account that life is unpredictable. We just don’t know when the bottom will fall out. You never know when an accident could result in a disability, or you could unexpectedly lose your job. After 50, it’s harder to find a job and in fact 24% of those laid off after 50 never find full time employment again at the same level.

Keep your long term financial goals in mind during a divorce and don’t trade them away without considering the worst case future scenarios. Prepare for the worse and hope for the best.

About Leah Handley

Leah Hadley, AFC®, CDFA®, MAFF®, is the Founder and Senior Wealth Advisor of Intentional Wealth Partners and Intentional Divorce Solutions

Leah Hadley, AFC®, CDFA®, MAFF®, is the Founder and Senior Wealth Advisor of Intentional Wealth Partners and Intentional Divorce Solutions. With nearly 20 years of experience in financial services, she specialises in helping women navigate divorce and major life transitions with clarity and confidence. Drawing from both professional expertise and her own lived experience, Leah is known for her compassionate, judgment-free approach to financial empowerment. Her new book, Intentional Money, is a practical guide designed to help women take control of their finances and build lasting independence. 

Connect with Leah
Instagram: @watchherthrive
LinkedIn: @leahahadley
YouTube: @watchherthrive

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Starting Fresh: Navigating the Property Market and Mortgages After Divorce
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Starting Fresh: Navigating the Property Market and Mortgages After Divorce

Published on
John Fraser-Tucker
John Fraser-Tucker Head of Mortgages at Mojo Mortgages

Divorce is widely cited as one of life’s most taxing experiences, ranking high on the scale of emotional and physical stress. Amidst the sea of legal paperwork and emotional recalibration, one of the most daunting hurdles is the question of “home.” Whether you are leaving a shared property to find a new sanctuary or looking to buy out a former partner, the bricks and mortar of your life often represent the first tangible step toward a new beginning.

As we move into 2026, the financial landscape for single applicants is evolving. “Divorce is one of life’s most significant transitions,” explains John Fraser-Tucker, Head of Mortgages at online mortgage broker, Mojo Mortgages. “While the emotional weight is often the primary focus, the financial shift, particularly regarding a family home, requires a clear-headed strategy”.

To help you navigate this transition, we’ve worked with John Fraser-Tucker at Mojo Mortgages to provide a comprehensive guide to securing your solo financial future;

1. Auditing the ‘Solo Economy’

“The shift from a dual-income household to a ‘solo economy’ is often the sharpest adjustment a person will make. Before even browsing property listings, you must perform a rigorous audit of your “new normal”. This isn’t just about what you earn; it’s about how your post-divorce cash flow appears to a lender.”

“Lenders today are more nuanced in how they view income, but they are also incredibly thorough:

  • Maintenance as Income: “If you are the primary caregiver and receive child maintenance or spousal support, these figures can often be used to bolster your affordability.

  • Maintenance as Liability: “Conversely, if you are the one making payments, these are factored into your debt-to-income ratio.

“Understanding these critical figures early on prevents the heartbreak of falling in love with a property only to be declined by a lender later.”

2. Bridging the ‘Affordability Gap’

“For many, the most significant obstacle is the affordability gap. When you lose a second income, your borrowing power naturally decreases, often making it feel as though the homes you want are out of reach.

However, the team at Mojo Mortgages notes that “fresh starters” have a unique advantage: “Equity.” Fraser-Tucker states, “If you are selling a marital home, your share of that equity can be a powerful tool. By injecting a larger deposit into your next purchase, you can secure a lower Loan-to-Value (LTV) ratio. This doesn’t just make the mortgage more likely to be approved; it unlocks more competitive, lower interest rates that can make monthly solo payments far more manageable.”

3. The Great Debate: To Buy or To Rent?

“There is often a societal pressure to ‘get back on the ladder’ immediately, but the expert consensus is to move at your own pace” says Fraser-Tucker.

  • The Case for Renting: “Many financial advisors suggest renting for six to twelve months. This period acts as a vital ‘buffer zone’, allowing you to understand your new lifestyle costs, such as utility bills, groceries, and commute expenses on a single income, without the long-term commitment of a mortgage.”

  • The Case for Buying: “If your settlement is finalised and you have a deposit ready, buying offers the long-term stability and psychological peace of mind that many crave after a period of upheaval. Buying allows you to begin building equity for your own future immediately.”

“Ultimately, the choice depends on where you are in your legal journey and what you feel you can comfortably afford for yourself.”

4. Avoiding the ‘Financial Ghost’ of Your Ex

“One of the most common – and potentially devastating – mistakes is failing to completely sever financial ties. If your name remains on a joint mortgage for a property you no longer live in, lenders will view that entire mortgage as your liability. This will drastically limit, or even entirely block, your ability to borrow for a new home.”

“Not only this, your credit score can be haunted by your ex-partner’s habits.” To protect your future, Fraser-Tucker recommends:

  • Closing all joint accounts as soon as possible.

  • Filing a ‘Notice of Disassociation’ with major credit agencies. “This ensures that if an ex-partner struggles with debt or late payments in the future, it won’t impact your ability to get a mortgage, a car loan, or even a credit card.”

5. Strategy Over Speed

“Starting over is a marathon, not a sprint. It is tempting to rush the process to feel settled, but the most successful transitions are those built on expert advice and a foundation of facts.

“By securing a free Mortgage in Principle early, you can move forward with the confidence that your new beginning is built on solid ground,” says Fraser-Tucker. A Mortgage in Principle helps give you an idea of how much you are able to afford, allowing you to house-hunt with a more realistic budget and a clearer head (though you should bear in mind a Mortgage in Principle isn’t official and should only be taken as an estimate).”

Your home should be your sanctuary. By implementing these strategic steps and seeking expert advice, you can ensure your transition is supported by a robust financial framework, providing the necessary clarity and confidence to move forward into your next chapter.

For more guidance or advice on this topic please visit https://mojomortgages.com/

About John Fraser-Tucker – Head of Mortgages at Mojo Mortgages

Since joining Mojo Mortgages in October 2022, John has played a pivotal role in strengthening our proposition, enhancing operational efficiency and ultimately helping more customers approach mortgages with confidence. With over 20 years of experience in the financial services sector, he possesses a deep understanding of mortgage products and the unique needs of customers in the UK housing market.

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It’s Over, Now What? 5 Core Pillars of Rebuilding After Divorce

Published on
Chris Sweetman
Chris Sweetman
Editor at The Divorce Magazine
Director at Fair Result

Sponsored post by Fair Result.

The ‘Day After’ Clarity

The day after your divorce is final can feel like a whirlwind. Relief, sadness, hope, and anxiety might all swirl together as you step into a future that’s suddenly wide open. If you’re feeling a mix of these emotions, know that you’re not alone. At Fair Result, we understand that the end of a marriage is more than a legal event – it’s a profound life transition. Rebuilding after divorce is not just about picking up the pieces, but about using them to create something new and uniquely yours. Let’s explore how you can do just that with the five pillars of personal renewal.

Pillar 1: Financial Sovereignty

One of the most daunting parts of starting over can be regaining control of your finances. Financial sovereignty isn’t just about making ends meet; it’s about building a foundation that empowers you to live confidently and independently. Here’s how you can take practical steps:

  • Assess Your Finances: Take stock of your income, expenses, debts, and assets. Understanding where you stand is the first step towards taking charge.
  • Set a Realistic Budget: Create a budget that reflects your new circumstances and goals. There’s power in knowing exactly where your money goes.
  • Seek Professional Guidance: If you’re unsure where to start, don’t hesitate to reach out for advice. At Fair Result, our team is here to provide clarity and support, helping you lay a solid financial groundwork for your new life.

Pillar 2: Emotional Reconstruction

Divorce is a loss, and it’s normal to experience a range of emotions – from grief to relief to uncertainty. Rebuilding emotionally is about giving yourself permission to heal and rediscover your sense of self. Here’s what can help:

  • Allow Time for Grief: Processing loss takes time. It’s okay to feel sad, angry, or even confused. Let yourself move at your own pace.
  • Reconnect with Yourself: Revisit hobbies, interests, and passions you may have set aside. Rediscovering old joys can spark new meaning.
  • Reach Out for Support: Whether it’s friends, support groups, or a professional counsellor, don’t be afraid to seek help. Fair Result can connect you with trusted partners dedicated to emotional well-being.

Pillar 3: Physical & Environmental Reset

Your physical surroundings and routines play a huge role in your sense of stability. A fresh start can be as simple as rearranging your living space or as significant as establishing healthier habits. Consider these steps:

  • Reclaim Your Space: Make your home reflect your tastes and needs. Even small changes like new bedding or rearranged furniture can create a sense of ownership and comfort.
  • Prioritise Your Health: Gentle exercise, nutritious meals, and regular sleep can dramatically improve your mood and resilience.
  • Manage Stress: Explore stress management techniques such as deep breathing, journalling, or walks in nature to help restore balance.

Pillar 4: Social Realignment

Divorce often shifts social landscapes. Friendships may change, and you might feel uncertain about where you fit. This pillar is about building a supportive network that reflects your new chapter:

  • Evaluate Relationships: Take stock of your current connections. Who uplifts you? Focus on nurturing those bonds.
  • Build New Communities: Join clubs, classes, or volunteering groups. Meeting new people can open doors to unexpected friendships and opportunities.
  • Stay Open: Social realignment takes time. Be patient with yourself and others as you find your footing.

Pillar 5: Future-Self Visioning

A fresh start isn’t just about moving on from the past – it’s about creating a future you’re excited to embrace. Now is the time to imagine, plan, and pursue what truly matters to you:

  • Set Personal Goals: Whether it’s travelling, furthering your education, or trying something completely new, write down your aspirations and take small steps towards them.
  • Create a Bucket List: Make a list of experiences you want to have. Let yourself dream big – this is your chance to explore.
  • Reconnect with Your Values: Reflect on what’s most important to you now. Use these guiding principles to shape your path forward.

The New Chapter

Divorce is not an ending – it’s a new beginning. With the right support and a practical framework, you can rebuild a life that’s not only stable, but vibrant and fulfilling. At Fair Result, we’re here to walk beside you every step of the way, offering guidance, resources, and a compassionate ear. If you’re ready to take the next step or just want to talk through your options, reach out to our team today. Your new chapter starts now – let’s make it the best one yet.

Get in Touch

Call us at 07 500 933 818 or 0333 577 7009

Email peter@fair-result.co.uk or chris@fair-result.co.uk

Read more articles by Chris Sweetman.

About Chris Sweetman

Chris Sweetman is an independent family solicitor and director of Fair Result – An award-winning law office who pride themselves on using innovative ways to help clients through the stress and complications of a marriage breakdown.

Chris can be contacted on 07500933818 or via email chris@fair-result.co.uk.

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Budget 2025: What Families Need to Know When Planning Separation or Divorce
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Budget 2025: What Families Need to Know When Planning Separation or Divorce

Published on
Emma Davies
Emma Davies
Partner
Nelsons Law

The 2025 Autumn Budget brings several tax and financial reforms that could significantly affect separating couples, especially those with complex assets.

Emma Davies, partner and family law specialist at Nelsons, highlights that these updates make it even more important for families to plan ahead. Below Emma outlines the key changes and what they mean for those preparing for separation or divorce.

November’s Budget introduced a series of reforms that will shape how families manage their finances going through separation or divorce, some of these changes carry significant strategic implications.

While many headlines focused on support for lower-income families, the Budget also introduced reforms to the taxation of wealth, property income and investments. These shifts mean that separating couples, particularly those with complex assets, should take specialist advice earlier and plan their financial arrangements with even greater precision.

  1. Increased tax focus on wealth and asset income

A central theme of Budget 2025 is increased taxation on income derived from assets, including investment portfolios, rental properties and other passive income streams.

Why this matters during divorce

  • Asset-related tax liabilities can directly influence the value of a settlement.
  • Transfers of investment assets or property between spouses, traditionally tax-neutral, may now carry more considerations around future tax exposure.
  • Individuals with diversified portfolios will need to evaluate the tax efficiency of keeping or trading certain categories of assets, especially where maintenance obligations are involved.

The opportunity

This is the time to revisit tax planning, both before and during a divorce. With specialist advice and careful planning it is possible to preserve value and reduce future tax exposures.

  1. Property and investment portfolios require new strategy

Reforms affecting property income and the broader taxation of asset-derived wealth mean that real estate portfolios, buy-to-let interests and investment properties require closer evaluation during a divorce.

Potential impacts

  • Rental income may attract different tax treatment, affecting affordability of ongoing financial commitments.
  • Timing of asset disposals, particularly high-value properties or shares, becomes more important.
  • Practical takeaway

During negotiations, it’s no longer just about who gets what, but who can most efficiently hold a particular asset class going forward and it will be important to work in tandem with your family lawyer and other professional advisers.

  1. Pension and long-term wealth planning take centre stage

The Budget includes reforms to pensions and savings support including caps on salary sacrifice pension contributions which means these schemes will become less tax advantageous.  In turn, this affects long-term financial planning during divorce as the ability of divorcing couples to rebuild their pensions post-divorce needs to be considered and may affect how settlements are structured.

For individuals with substantial pension wealth, this means:

  • Greater scrutiny on how pensions are shared or offset.
  • Increased importance of actuarial valuation to ensure fair outcomes.
  • More strategic use of pensions as part of overall settlement structuring.

Given the complexity, specialist advice is highly recommended when reviewing pension division and post-divorce retirement planning.

  1. Tax threshold freezes: A slow-burning impact

Personal tax thresholds remain frozen, effectively pulling more individuals into higher tax bands over time (“fiscal drag”).

For some individuals, this means:

  • Increased exposure to higher tax rates on both earned and investment income.
  • Potential increases in effective maintenance obligations.
  • More need for forward-thinking cash-flow planning post-divorce.

This change subtly but meaningfully affects long-term affordability and financial planning for both parties.

  1. Changes to family benefits: Relevance for blended and larger families

Although primarily aimed at lower-income families, the abolition of the two-child limit for Universal Credit and related child benefits has indirect implications for separated parents, blended families and households with childcare responsibilities split between homes.

For clients with more wealth, the relevance is twofold:

  • It may affect negotiations where one parent has significantly lower income or earns irregularly (e.g. entrepreneurs, directors, or individuals with fluctuating asset income).
  • Where school fees, childcare, and lifestyle expectations are high, these changes may form part of broader discussions about child maintenance and living arrangements.

  1. The landscape is more complex – early planning is essential

The Autumn Budget 2025 creates a more complicated financial environment for separating couples, particularly those with:

  • High-value property portfolios
  • Significant investment income
  • Businesses or shareholdings
  • Trust structures
  • International assets
  • Large pension pots

Strategic advice at the earliest stage is crucial. The way assets are valued, shared, or retained now carries different long-term consequences than it did even a year ago.

Emma emphasises that, despite the added complexity, with the right advice families can still make informed and confident decisions about their future. If you’re considering separation or are in the early stages of divorce, Nelsons’ family law team can help you navigate the Budget’s implications and protect your long-term financial position.

To find out more about Nelsons’ family team, please visit: https://www.nelsonslaw.co.uk/personal-legal-services/family-law-solicitors/

For more information, please contact Huma Mian or Niamh Tracey at Cartwright on 0115 853 2110.

About Emma Davies

Emma is a partner and head the family law team at Nelsons. She qualified as a Solicitor in 2008 and has been at Nelsons since 2009.
Emma advises on divorce and financial settlements which involve complex issues and substantial assets. She also advises on pre and post nuptial agreements and separation agreements along with private law Children Act disputes. Emma is a qualified collaborative practitioner.
Emma’s areas of expertise include divorce, civil partnership dissolution, financial provision, collaborative law, pre-nuptial agreements, post-nuptial agreements, separation agreements, parental responsibility, child arrangements, and prohibited steps orders and specific issue orders.

About Nelsons: 

Nelsons was established in 1983 and provides support to businesses, individuals and families with their legal and investment needs. Nelsons’ experience and depth of resource has also enabled them to offer services to other solicitors through Fusion Legal – a mutually-beneficial referrals and support network for law firms. The firm is recognised by the leading, independently researched Legal 500 and is recommended by them in more than 20 practice areas. The firm is recommended by Chambers and Partners and also features in The Lawyer’s UK 200 Annual Report of the UK’s largest 200 law firms. Nelsons has offices throughout the East Midlands in Nottingham, Leicester & Derby

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How Hidden Assets Deny Fair Divorce Settlements, and What You Can Do
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How Hidden Assets Deny Fair Divorce Settlements, and What You Can Do

Published on
George Simpson
George Simpson Director of Operations, Investigations and Regulation Services iSanctuary

Every year, thousands of people face unfair divorce settlements because their former partners hide or disguise their true wealth.  In this article, iSanctuary’s Director of Investigations, George Simpson, talks about how hidden assets can be uncovered, and what you can do to protect your financial future.

When the truth about money and assets are concealed

Divorce is often a hugely emotive and stressful event, where even seemingly amicable and open arrangements are later found to have been made in bad faith.  Too often, one party (more often, though not exclusively, women) faces the devastating reality of a partner concealing or obfuscating their wealth to the detriment of the other.

“We see time and again that hidden wealth isn’t always about vast fortunes, sometimes it’s the house that was unknowingly transferred, or the company shares ‘sold’ to a friend,” says George Simpson, an experienced financial crime investigator and Director of Operations at iSanctuary.  “What makes the difference is early identification of the issue, before the trail goes cold.”

Whether through offshore holdings, crypto assets, or conveniently “forgotten” investments, hidden assets can dramatically distort the outcome of a divorce.

The Growing Challenge of Hidden Assets

For those in the UK, the disclosure process is designed to ensure both parties reveal their full financial position.  Unfortunately, some individuals choose to conceal or misrepresent information during this stage, and without expert help, it can often go unnoticed.  Such actions can result in a drastically reduced settlement with potentially life changing consequences in terms of a spouses’ long-term financial stability.

In today’s globalised financial world, funds can be moved across borders instantly.  Crypto assets, offshore structures in opaque jurisdictions make tracing assets increasingly complex.

Women that paused their careers to raise families are disproportionately affected, often simply because they lack access to the full financial picture.

Red flags to watch for include:

  • Unexplained changes in business ownership or spending
  • Delays or evasions during Form E disclosure
  • Transfers to family members or new entities
  • A sudden interest in cryptocurrency or “foreign investments”.

“Every asset leaves a footprint, the challenge is following that footprint through layers of misdirection, and that’s where professional asset tracing becomes an indispensable.”

Practical Steps: Protecting What’s Rightfully Yours

If you suspect your spouse may be hiding wealth, here are five practical steps to safeguard your position:

  1. Act early: Raise your concerns as soon as possible; time is critical in preventing asset dissipation.
  2. Keep everything: Store copies of statements, tax returns, and even old emails, they may reveal inconsistencies.
  3. Engage professionals: Solicitors, forensic accountants, and investigators can collaborate effectively to expose concealed assets.
  4. Know your rights: Under UK family law, both parties are legally required to give full and frank disclosure.
  5. Ask about funding: If you’re financially restricted, specialist funding can help cover investigation and legal fees until your settlement is finalised.

How iSanctuary Can Help

At iSanctuary, our Divorce Asset Tracer service is designed to give clients clarity and control.

This fixed-price investigative service offers an initial assessment of a person’s global asset profile, helping uncover what’s missing from disclosure documents and providing the client with sufficient information to inform their decision making and develop a negotiation strategy.

For more complex cases, iSanctuary’s full-suite of investigative services combine traditional field expertise with advanced technology to trace crypto assets, reveal offshore holdings, and build robust evidence for court if required.

Our reports are legally defensible in UK proceedings, and our investigators, including George Simpson, are available to provide expert witness testimony.

“Our work isn’t about confrontation, it’s about restoring fairness and creating a level playing field.  We help clients see what’s really theirs and ensure settlements reflect reality, not manipulation.”

The Human Impact, and the Hope

Hidden assets don’t just skew numbers on a spreadsheet.  They determine whether someone can afford a safe home for their children, continue schooling without disruption, or simply move forward without financial anxiety.

“It’s powerful when we can give someone the evidence to walk into court with confidence, knowing they have the truth on their side.”

Take the First Step

If you believe your spouse or partner may be hiding assets, don’t delay.  Hidden wealth can be traced, but timing and expertise matter.

You can contact iSanctuary for a free, confidential consultation and learn how our Divorce Asset Tracer service can help you protect what’s rightfully yours.

Email Tim Gilkison in confidence at: tg@isanctuary.io

https://isanctuary.io/asset-tracer-divorce/

 

About George Simpson and iSanctuary

George Simpson is Director of Operations, Investigations and Regulation Services at iSanctuary.  He is a highly experienced professional with specialist knowledge and proven experience in law enforcement and financial services regulation in the context of a broad range of financial crime settings. George has worked in specialist departments within New Scotland Yard, precursor agencies of the National Crime Agency, and latterly the Financial Conduct Authority.  His expertise includes the investigation and successful prosecution of ground-breaking serious and complex fraud and money laundering cases.  George has extensive knowledge of the UK’s regulatory anti-money laundering and counter terrorist financing regime.

iSanctuary is a specialist intelligence and investigations firm uncovering hidden wealth and undisclosed assets worldwide.  With over $1 billion in assets identified, the company provides legally defensible investigations that help clients achieve fair and transparent financial outcomes in divorce and litigation.

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Pension Sharing Orders: What You Need to Know
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Pension Sharing Orders: What You Need to Know

Published on
Peter Marples
Peter Marples
Editor at The Divorce Magazine
Director at Fair Result

Sponsored post by Fair Result.

Why a Pension Matters in Divorce

Only 13% of divorcees consider pensions when dividing assets. Pensions are often the second biggest asset after the home – but often ignored at your peril to protect you in later life.

Pensions represent a critical part of financial security, particularly in later life. Yet, during the tumultuous process of divorce, they are frequently overlooked. This can lead to significant financial disadvantages for one or both parties. Understanding the importance of pensions and the mechanisms available for sharing them is essential for anyone going through a divorce or dissolution of a civil partnership.

What is a Pension Sharing Order?

A Pension Sharing Order (PSO) is a legal order that allows for the division of pension assets between divorcing spouses or civil partners. This order ensures a fair distribution of pension benefits, providing financial security to both parties. It is often described as equalisation of income in retirement, and this is what the courts try to achieve when looking at pension distribution even when only one party has a significant pension. A report is often required from a pension expert to forecast how dividing a pension between parties will result in the equalisation of income for the later years.

When a PSO is granted, a specified percentage of one party’s pension is transferred to the other party. This division is legally binding and can be enforced by the court, ensuring that the agreed-upon split is executed. The transferred pension benefits can either be directed into a new pension scheme for the receiving party or remain within the original scheme with the benefits reallocated.

Pension Sharing vs. Other Options

While a Pension Sharing Order is a common and often preferred method for dividing pension assets, there are other alternatives, such as offsetting and pension attachment orders.

Offsetting: This involves balancing the value of the pension against other assets. For example, one party may keep the pension while the other party receives a larger share of the property or other financial assets. This is effectively simply dividing the overall assets at the time of divorce to achieve equalisation at that point – with the courts often accepting house values and pension values rise at roughly the same rate.

Pension Attachment Orders: This method, also known as earmarking, directs a portion of the pension benefits to the ex-spouse when they are paid out. However, this does not transfer ownership and can be less flexible and reliable than a PSO. Often not a common approach taken by the courts.

PSOs are often favoured because they provide a clean break and clear division of pension assets, ensuring that both parties have financial independence post-divorce.

Who Can Apply & When

PSOs are available to individuals undergoing divorce or dissolution of a civil partnership. It is important to note that these orders are not automatic and must either be agreed upon by both parties or ordered by the court. The division of the pension will clearly be set out in the financial consent order and a pension sharing annex attached to the consent order will also be approved by the court. This must be sent to the pension company dealing with the distribution within 4 months of the consent order being approved by the court.

Eligibility conditions include:

  • The parties must be legally divorcing or dissolving a civil partnership.
  • Both parties must agree to the order, or it must be mandated by the court.

How the Process Works

The process of obtaining a PSO involves several steps and can be complex. Here is a simplified timeline:

Step 1: Obtain a pension valuation. This requires contacting the pension provider to evaluate the current worth of the pension. This is commonly referred to as obtaining the CETV value of the pension (Cash Equivalent Transfer Value)

Step 2: Legal paperwork and court involvement. Solicitors and sometimes actuaries and pension experts will be involved in drafting and submitting the necessary documents to the court.

Step 3: The court grants the Pension Sharing Order. Once the court approves the order, the pension provider is instructed to execute the division of assets.

What Happens After the Order is Made?

Once a PSO is granted, its implementation begins:

  • Percentage-based transfer: The agreed-upon percentage of the pension is either transferred to the receiving party’s new pension scheme or reallocated within the current scheme.
  • Internal transfer: In some cases, the benefits remain within the original scheme but are adjusted to reflect the new ownership division.

Common Pitfalls to Avoid in Pension Sharing Orders

Navigating the division of pensions can be fraught with challenges. Here are some common pitfalls to avoid:

  • Not valuing the pension correctly: Obtaining an accurate valuation is crucial for a fair division.
  • Agreeing to a split without legal or financial advice: Professional guidance ensures that your interests are protected.
  • Failing to account for future needs: Consider long-term financial security when dividing assets.
  • Also consider the scheme rules for each pension and find out what happens if you die before you receive the pension – can it be distributed as part of your estate or do the scheme rules not allow for this. Very common in some public sector pensions.

Fair Result’s Approach

At Fair Result, we support our clients through the process of obtaining a Pension Sharing Order with expert financial advice and clear communication.

  • Access to financial experts who can provide accurate pension valuations and strategic advice.
  • WhatsApp contact for convenient and timely communications.
  • Fixed-fee model ensuring financial clarity from day one.

Conclusion

In conclusion, pensions should be a part of every divorce conversation. Their importance to financial security in later life cannot be overstated. Ensuring a fair division through a Pension Sharing Order can provide peace of mind and stability for both parties involved.

Download our Divorce Guide or get in touch for a free consultation to explore how we can assist you in protecting your financial future.

Read more articles by Peter Marples.

About Peter Marples

Peter Marples – Director of Fair Result and qualified accountant, with the determination to change the way divorce is transacted. For further advice on financial settlements and navigating divorce, use the contact details below:

  • Email
  • Give the team a call – 07500933818 or 0333 577 7009
  • Complete an enquiry form

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Common Financial Mistakes to Avoid During and After Divorce
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Common Financial Mistakes to Avoid During and After Divorce

Published on
Nicki Mitchell
Nicki Mitchell
Partner
Jones Myers

Sponsored post by Jones Myers.

The fear of starting all over again and all the financial worry that can bring with it can understandably have a profound effect on many people going through divorce or separation.

This fear can be particularly acute for those who have not had to deal with financial practicalities such as tax, standing orders and direct debits during their relationship.

If you are going through divorce or contemplating it and are concerned about future finances, this article will help to keep you on the right financial track throughout your divorce and beyond.

Be Open and Honest

Not sharing financial information during a relationship can contribute to problems during divorce proceedings.

One spouse may have no idea where the budget line is – or even where it should be drawn – and may have unrealistic expectations of what they are entitled to, or what is a realistic and affordable.

One spouse may have hidden savings or income from the other or scrutinised the other’s spending without being transparent about their own. On divorce, there is nowhere to hide. It is fundamental that both spouses fully and frankly disclose everything they have to each other as a starting point for an informed negotiation.

The Importance of Financial Disclosure

In every divorce, separating couples must provide to the other full details of their assets, income, pension and liabilities.   This is known as financial disclosure.

Financial disclosure ensures that both spouses can make fully informed decisions about what they consider to be a fair settlement. A failure to disclose anything material to the settlement can in some cases lead to an agreement being set aside. Lawyers and judges know every trick in the book and will ask questions if they suspect that money has been concealed. They may even employ forensic accountants to track down missing assets.

Don’t be tempted to hide money in offshore banks. These still have to be disclosed.  If you do not provide everything that is necessary to understand the financial position, family courts have the power to question your accountant, your financial advisor and even your bank manager.

Setting up a new business shortly before separation may well be seen as suspicious or even a deliberate attempt to hide assets.  Taking steps designed to put money beyond the reach of your spouse could lead to injunctions being made against you, freezing assets, or ordering the return of monies from third parties.  In the long run, actions such as these are highly unlikely to succeed and will almost certainly damage your credibility in the eyes of the court.

The Penalties of Concealing Assets

If it later comes to light that you have withheld material financial information during the financial disclosure process, your spouse might be able to ask the court to set aside the Financial Consent Order and relook at what would be a fair order – taking into account all the assets, including those not previously disclosed.

The court can also make an order that you pay your ex’s legal costs. In the worst-case scenario, deliberately withholding financial information in breach of a court order can amount to a contempt of court for which a range of penalties (including ultimately imprisonment) could be imposed.

Include Pensions in Financial Settlements

Frequently overlooked in financial settlements, pensions are frequently one of the most valuable assets of a marriage. They often make up the second highest- value asset in a divorce settlement after the family home – or sometimes the highest.

It is key that information about pensions is made available in the financial disclosure process which must include details of all pensions, including state pensions – and the value of each one.

The most common way in which a disparity in pensions is addressed in a divorce settlement is pension sharing.  Pension sharing splits the pensions immediately and provides a clean break

As an alternative, in some cases ex-spouses prefer to take a greater share of the equity in the family home or other capital, as a trade-off for a share of the other’s pension.

Some divorces may involve several pension arrangements so it is important to consider which arrangements should be shared, and to what extent.  Pensions are complex and, save in very straightforward cases with pensions of limited value, it is important to get specialist advice about them before agreeing a settlement.

The pension share may be internal (when the recipient becomes a member of the scheme) or external when the share must be invested in an existing or new arrangement of the receiving party. Care should be taken to obtain details of the cost of any transfer.

In deciding what is best for them, the couple need to consider how their respective financial needs will be met and what other assets are available for distribution.

Consider Financial Planning

It can be helpful to have financial advice during settlement negotiations.  Many financial advisers use cashflow modelling, which can be a valuable way of how different settlement options might pan out in the future. In processes such as collaborative practice or mediation, it is quite common to bring a financial adviser into the process as a neutral to help the discussions.  Further financial advice can then be taken on an individual basis when settlement terms are clear.

Get a formal Financial Order

Once a financial settlement is agreed, it is almost always best for the terms agreed to be made final and binding in a court order. This is a legally binding document which details the main assets owned by divorcing couples and sets out the financial arrangements agreed between them. The terms of an order are binding and can be enforced through the courts if there are any problems putting those terms into effect.

It is important to understand that the divorce process itself does not dismiss financial claims which  can be pursued many years after the divorce has been finalised provided the person bringing the application has not remarried. Putting off the conversation at the time of separation can sometimes just be kicking the can down the road.

Try to avoid exceeding your budget

I am not a financial adviser, but these are some pointers which might be useful to think about:

  1. Create a ‘to do’ list of all things financial (bills etc) and an aspirational list to set goals for enjoyable things such as treats and breaks
  2. Consider having two bank accounts – one for day-to-day expenses for the house, food, car and associated expenses, direct debits, standing orders and credit card payment. The second is for setting aside some savings for exceptional expenses such non-essential clothing, holidays, and house repairs.
  3. Set out the absolute and exact payments needed every month for your house and family
  4. Know when your maintenance payments arrive and budget accordingly. Ensure standing orders don’t go out before your monthly payments are due in
  5. Apply to your Council for a 25% council tax discount. The concession applies if you are on your own or have younger children
  6. Expand your support network if you’re on your own or have children. Now is an ideal time as the country emerges from lockdown
  7. Take professional advice on preparing and budgeting for your own retirement
  8. Make a will. If you have a pension or life assurance, ensure it includes your chosen beneficiaries and is updated. Review it every few years.
  9. Stay healthy in body and spirit – try new things. You could also consider engaging a life or Divorce coach who specialises in helping people in your situation prepare for their new future

Spousal Maintenance and Child Maintenance

Remember that Spousal Maintenance will usually be paid for a period of time to enable you to adjust to financial independence or when your financial needs are reduced, for example, when your children finish school or university, or leave home.

Be aware that your spousal maintenance will stop if you remarry or enter into a civil partnership or if either of you dies. It could also be affected if you meet a new partner and move in together

It is also important to plan for when child maintenance – which is mandatory for both parents for children under sixteen and youngsters under twenty who are still in full time education – comes to an end.

As part of our holistic approach, Jones Myers advises and guides our clients through the stages of divorce during and after their divorce.

A champion of non-confrontational divorce and resolving issues in a spirit of collaboration and cooperation, our extensive expertise includes alternative to avoid courts which include mediation and collaborative family law.

Our pre-divorce and post- divorce support includes helping them to stay on the right financial track as they embark on the next chapter of their lives.

Read more articles by Nicki Mitchell.

About Nicki Mitchell

With extensive experience in family law, Nicki specialises in the financial aspects of relationship breakdown – and particularly complex cases involving family businesses, multiple properties, and complicated pension arrangements.

A skilled Mediator, Child Inclusive Mediator and Collaborative Family Lawyer, Nicki champions Alternative Dispute Resolution processes which avoid a lengthy court process and can lead much more quickly and cost effectively to a successful resolution.

Her exceptional track record also includes advising clients on the more traditional methods of resolving issues surrounding family breakdowns.

Direct Dial: 01904 202553 or email  Nicki.mitchell@jonesmyers.co.uk. Website: www.jonesmyers.co.uk

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Investing After Divorce: Securing Your Future Financially
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Investing After Divorce: Securing Your Future Financially

Published on
Peter Marples
Peter Marples
Editor at The Divorce Magazine
Director at Fair Result

Sponsored post by Fair Result.

Divorce can have a significant financial impact, often leaving individuals feeling uncertain about their future. Taking control and focussing on long-term financial planning is crucial for recovery and stability. This blog aims to guide you through the process of investing as a vital component of your financial journey post-divorce.

Assessing Your Financial Position Post-Divorce

To begin, it’s essential to understand your current financial position. Assess your assets, savings, and income to build a clear picture of what you have. Reviewing your settlement, including pensions, property, and savings, is crucial. Additionally, knowing your monthly outgoings and setting a realistic budget will help you manage your finances effectively.

Why Investing is Key to Long-Term Security

Investing is a powerful tool for growing your money over time and securing long-term financial stability. Relying solely on a savings account is not enough to ensure financial growth. Investing can also be emotionally empowering, giving you confidence and a sense of control over your financial future.

Types of Investments

There are various investment options to consider, each with its own benefits and risks: a licensed financial advisor can give you more advice but here are some areas to consider.

  • Stocks, Bonds, and ISAs: These are common investment vehicles that can offer substantial returns.
  • Property Investment: If relevant to your situation, investing in property can be a lucrative option.
  • Pension Top-Ups: Consider consolidating your pensions or making additional contributions for future security.
  • Diversification: Spread your investments across different asset types to minimise risk.
  • Risk Levels: Choose investments that align with your personal comfort zone and risk tolerance.

Starting Small & Building Confidence

You don’t need a large lump sum to begin investing. Starting small can help you build confidence and understand the power of compound interest and consistency. Working with a financial advisor can provide personalised advice and support as you navigate the investment landscape.

Mistakes to Avoid

Avoid rushing into investments without proper research. It’s essential to make informed decisions rather than relying on advice from non-experts, such as friends or family. Taking the time to understand your options will help you avoid costly mistakes.

Where to Get Help

Speaking to a financial advisor or planner can offer valuable insights and guidance tailored to your unique situation. Fair Result‘s wider network of professional contacts can provide continued support beyond legal proceedings, ensuring you have access to the resources needed for successful financial planning. Please contact any member of the team on the link below and we can help point you in the direction you need to get the help you deserve after the stress of divorce. Whether that be financial advisors- mortgage advisors or phycological help we are here to assist. And it’s all done within our fixed fee divorce model, where you know your exposure to legal fees right at the outset, whether you case takes 2 weeks or 2 years.

Conclusion

Rebuilding financially after divorce is not only possible but achievable. With the right knowledge and support, you can secure your future and take charge of your financial destiny. Download our Divorce Guide available on our website or contact the team at Fair Result for additional assistance and resources.

Read more articles by Peter Marples.

About Peter Marples

Peter Marples – Director of Fair Result and qualified accountant, with the determination to change the way divorce is transacted. For further advice on financial settlements and navigating divorce, use the contact details below:

  • Email
  • Give the team a call – 07500933818 or 0333 577 7009
  • Complete an enquiry form

You might be interested in

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