The no-fault divorce law landed recently in the UK; divorce lawyers are expecting an influx of applications now there is no requirement to place the blame on either party.
Separating from a partner could have a big impact on your finances, especially if you have relied on their income during your marriage. Innovative divorce firm Fair Result has provided us with the 3 MOST important financial considerations that need to be made following divorce.
Spousal & Child Maintenance
The first thing to consider is whether you must pay spousal maintenance or whether you will be receiving spousal maintenance; whether you pay or receive any child maintenance. This will have a very significant impact on your disposable income in the immediate aftermath of divorce and separation.
It’s important that when you embark on your new single life you take account of outgoings or income from that previous relationship as it will materially affect how you move forward. Budget Wisely.
Preparing for your future
Once you have reached your financial agreement in divorce and the consent order is signed sealed and approved by the court you are free to move on. Although, think carefully about your relationship with money after divorce, because you probably already halved your existing hard-earned savings. Divorce and financial settlements are often very expensive where one marital pot is divided into 2.
You will want to move on with life and start creating happy memories again.
If you are unsure about your relationship with money after divorce and want some advice about the possibility of a prenuptial agreement if you are considering re-marrying after divorce.
There are many things that can be looked at to give you security. For instance, a living together agreement which will set out how the new relationship will finance itself. Not exciting or even romantic at the start of any new journey but it may save you a lot of heartache and many thousands of pounds if the relationship doesn’t survive.
The next thing to consider is whether you’re going to embark on a new relationship and how soon the question of money should be brought up in any new relationship.
In any new relationship, the excitement and adrenaline rush of the moment where is the possibility of hope and security for the future, the question of money will always be at the back of the mind.
But how early in that relationship should you talk about money. It’s not the most appropriate question to ask on a first or second date ‘what’s your credit score?’ Conversely, if the relationship is going well, you don’t suddenly want to find out that your new partner is still paying off £50,000 of credit card bills from a previous relationship.
So, when is the right time to discuss finances? There is no hard and fast rule. Yes, at some stage you’re going to have to have that conversation with any new partner. Otherwise, you risk a potential relationship disaster – finding out about huge debts can put a serious strain on any new developing relationship.
Use your intuition to get an inkling about how compatible you and your new love are when it comes to the question of cash.
Look at the way your new partner treats you for example do you go fine dining or does he always choose a pizza joint when it’s their turn to pay. Is it cocktails in the hottest bar in town or a few beers in a quiet hideaway? Is the car the latest Hot Wheels or is your new partner driving a safe average reliable vehicle? All these things will give you some idea of your new partner’s financial position and what’s likely to be the future for you moving on.
At some stage, there will have to be a discussion of finance to establish your new relationship with money after divorce. Find a good time to talk and put your cards on the table. Be honest with your new partner and be open to your new partner’s feelings.
Chris Sweetman, Director of Fair Results, an authorised and regulated solicitor with the Solicitors Regulation Authority.