Going through a divorce or separation of any kind can be a challenging period in your life to navigate. Not only is it an incredibly upsetting time for any couple to go through, but the financial impact of a divorce can also be widespread.
The topic of how you are going to deal with the financial implications that come with a divorce can prove to be incredibly sensitive and difficult to discuss. Not only in terms of how you are going to pay for the divorce proceedings but also what will happen as you and your partner work towards an agreement on how you are going to divide finances and assets.
This article will highlight some of the main concerns surrounding finances in the wake of a divorce, and how best to approach this difficult situation.
The legal costs associated with divorce proceedings
The initial financial hurdle to contend with when it comes to a divorce is the legal cost. We know that through this challenging time, the financial aspect of your separation may not be the most pressing thing on your mind, but it is important that you take into consideration just what it will cost as you begin the proceedings.
For many couples, navigating a divorce can be dealt with amicably and collaboratively which can help you to avoid paying solicitors as you work through your separation, but for others where the separation may result in conflict, legal fees for things such as legal representation and taking disputes to court can result in substantial legal fees.
Dividing assets and financial liabilities
One of the most challenging things to face in the wake of a divorce is coming to an agreement on how best to divide any assets and financial liabilities you once shared as a couple. Often, this comes in the form of property or other large investments, but it can also include shared debt such as loans or credit cards.
Once you and your partner have come to an agreement on how best to divide your financial assets, you will need to apply for a consent order to make this agreement legally binding, which will ensure you have a clear picture of how things are to be split once your separation is finalised.
The impact of divorce on retirement funds
Pensions are often one of the largest assets to address when dividing your financial assets during a divorce. In the UK, there are several different ways pensions can be divided during a separation, each with its own implications for you to consider, from future financial planning to tax obligations.
We know this can be a difficult issue to grasp, so seeking specialist advice on this matter will help you and your partner come to a fair settlement that is mutually beneficial for all parties involved.
Child support and financial obligations
A divorce can be incredibly difficult for couples who have children together for a number of reasons. Not only in terms of the adjustment you are going to experience as a family as you and your partner separate, but also the financial obligations that you need to address to ensure your child has the support they need in the future.
If you and your partner are unable to come to a mutual agreement on how you are going to support your child financially in the wake of your divorce, you may need to seek additional guidance which will help you come to a fair financial agreement.
If you feel that you and your partner may need assistance as you navigate the financial implications of your separation, you could seek professional help from divorce solicitors. With their expert knowledge, they will be on hand to guide you through the process and help you agree on the best way to divide your financial assets.
