Going through a divorce is an incredibly stressful and confusing time. You don’t want a long, drawn out proceeding that becomes acrimonious and volatile. At the same time, you don’t want to feel financially duped and you have a right to a fair and equitous split of your resources.
Whilst research shows that over 95% of people do not use a Financial Advisor when going through their divorce, over 61% of them said retroactively that they wished they had. A Financial Advisor can give you guidance on how to achieve your future financial goals, assist in divorce proceedings so all your information is complete and accurate, and even save you money by helping avoid a costly court case.
Guidance from a Financial Advisor can save you money and time
Many people reach out to a Financial Advisor after their divorce proceedings to help with their new financial situation. But using one as part of your divorce team allows for far more fair and inexpensive proceedings!
One of the most crucial elements of a divorce is a disclosure of both you and your ex-spouse’s finances. This is done by filling out something called Form E and providing details about your assets, pensions, incomes, outgoings, expenses and more. Though the government offers some guidance on completing this form, it can be a confusing, difficult, and time consuming process.
Your Financial Advisor can not only assist you in filling out your Form E, but they can help you uncover and report critical financial assets that oftentimes fly under the radar. This could be fine jewellery, heirlooms and antiques, college savings accounts and more.
A Financial Advisor may also provide mediation and guidance so that a financial settlement is reached without the need to go to court. Court proceedings could cost you tens of thousands of pounds on top of what you’re already paying to your lawyers and counsel. With a financial advisor working to assist both parties towards the goal of an equitable settlement, you can be confident you’re not being duped while saving a significant amount of money and time.
Like any major life change, divorce has a big financial impact
Going through a divorce can cause your current and future financial situation to drastically change. It’s important to consider how a divorce will impact your:
- Day-to-day outgoings: When you no longer have joint outgoings, you may find that things like housing and bills are more expensive for you month to month. At Robson Laidler Wealth, we use software called Voyant that can plot out your personal financial forecast based on different outcomes in the divorce proceedings. Don’t face hardships because you relied on guesswork – know exactly how you can maintain or adjust your lifestyle with your new financial situation.
- Pensions: While Pension Providers can issue annual statements, which show the amount of pension income that will be paid on retirement, it’s important for you to know the current value of your separate or joint pension schemes. A financial advisor can determine this value so you have an accurate picture of all your finances.
- Taxes: Going through a divorce may impact the amount of tax you owe each year, either because of your new financial situation or due to the loss of certain taxation perks like Married Couple’s Allowance. A Financial Advisor has the expertise and knowledge to help you achieve tax efficiency that a divorce lawyer does not.
- Mortgages: Your home can hold tremendous personal value, but after a divorce you may find you need to remortgage it in your name, adjust your mortgage payments, or buy out your spouse’s share of the equity. A financial advisor can help you with all these processes.
You’ll naturally want to maintain the lifestyle you had before your divorce, or even improve upon it in the future. A Financial Advisor can help you see the future more clearly and offer you valuable guidance along the way.
A financial advisor can help you identify, and achieve, your financial goals
It’s not uncommon in a marriage for one partner to take on the primary responsibility of financial management. One in five women say they handed over control of their money to their spouse during their marriage. Whether you’ve always been closely involved in your personal finances or are having to start from scratch, going through a divorce means reanalyzing your personal financial goals. Depending on your situation, you may want to:
- Pay off debts
- Save for a comfortable retirement
- Build up an emergency fund
- Purchase a new house
- Create new streams of income
- Build your wealth through investments
- And much more
A Financial Advisor assisting you through the divorce process can help you have a clear picture of your financial situation and make a plan for how you can achieve your goals. You deserve stability and confidence in your life, and a Financial Advisor can help you gain this even through the emotional turmoil of a divorce.
At Robson Laidler Wealth, we value creating a positive difference in our clients’ lives. If you want to save money and stress during your divorce proceedings and prepare for your future at the same time, contact us to get started today.