Financial Planning in Divorce

A marital breakdown and ensuing divorce will involve a time of intense emotional and, for many, financial uncertainty.  In many marriages it is just one partner that deals with most of the family’s financial arrangements but when the relationship dissolves, both parties need to think of their own financial future.  In order to do this there needs to be an understanding of all current matrimonial assets including investments and pension funds which may, at the point of divorce, be unevenly owned between the two partners.

Understanding the existing arrangements and deciding who keeps what, will invariably involve the need for advice.  These decisions can often best be made with impartial advice given to both parties from the same source but if that is not possible, individual advisers will usually be required in order to decide:-

    •    Who keeps the house or should it be sold?
    •    How are the existing savings and investments to be treated?
    •    How are the pension funds to be shared?

There will be practical and emotional needs to consider, do the children still live at home, for instance and what is the age and future earnings potential of each party?

At Beechwood we frequently work in conjunction with solicitors acting for clients in order to provide peace of mind and the most appropriate financial settlement in these difficult times.

In the case of pension entitlement, it is common for one partner to have far greater benefits than the other.  More often than not it is the husband as a result of his wife not working while raising the children.  This will often result in a Pension Sharing Order being issued by the Court which normally involves the transfer of a cash sum from one partner’s pension to an arrangement established in the name of the other.  Advice is needed by the recipient in order that the most appropriate type of pension can be arranged for receipt of the transfer.

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