By Tracey Foster, a Financial Designer at Anstee & Co.
Divorce can be an extremely stressful time for individuals – I have witnessed how physically and emotionally draining the whole process can be.
Is it any wonder when there are so many things to consider, some areas of the financial arrangements can be overlooked or decisions made, which are perceived the ‘easy option’, and later turn out to be a bad decision.
This can be damaging to an individual’s overall financial health.
There are many ways sound financial advice can pay for itself during the divorce process. Financial advisers are generally called upon at the end of the process when a financial settlement has been agreed, this may be a lump sum or a pension sharing order and the client requires advice on how these should be invested for the future.
However, it would make much more sense for us to be involved earlier in the process to help work out what options are available and how these may be achieved to provide a better outcome. Here are some of the areas we can help:
Pensions can be a minefield at the best of times and on divorce, they can become even more complex. The ‘easy option’ is to say to each other just keep their own pensions or ‘I do not want a share of the pension, let me stay in the family home’. In my experience, this is due to a lack of understanding of pensions generally and in some cases, the pension assets can far outweigh the value of the property. A financial adviser can help you:
- Understand what type of pensions are involved and how they may differ and the impact this may have on the corresponding values.
- Understand how the pensions can be treated upon divorce
- The impact of the Lifetime Allowance and Lifetime Allowance protection upon a Pension Sharing Order
- The impact of the Annual Allowance/Tapered Annual Allowance and the Money Purchase Annual Allowance for future benefit accrual – post-divorce.
Every married couple will manage their finances in a different way. As financial advisers, we very often see the scenario where one party has managed all of the finances and made the decisions about the money during the marriage. So, when it comes to divorce, an ex-spouse is entering a whole new world, where understanding and decisions are needed around the finances.
Protection can be an afterthought, perhaps maintenance payments will be made in respect of dependent children. Have you considered how you would manage financially, if these maintenance payments were to stop, due to the death of an ex-partner? This is regularly overlooked and is a key planning point. As any protection policy used for this purpose should be put in place prior to the divorce being finalised.
How Tracey Foster can help you in divorce.
Tracey is an Independent Financial Adviser (IFA’s). This means that the advice she offers is unbiased. She will look at all the financial options available to you.
Tracey is based at our Birmingham, Snow Hill Queensway office. The initial meeting with Tracey is free and without obligation. Why not arrange a meeting today to see how Tracey can help you in divorce?
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