Considering the finances……
When pension sharing legislation (2000) allowed pensions to be physically split between divorcing couples, the role of an Independent Financial Adviser (IFA) became important in cases where pensions formed part of the financial assets. In fact, it is fair to say that there are many cases where an IFA can be of great assistance in helping couples decide how all financial assets should be divided in order to create a fair outcome.
Getting divorced is probably one of the biggest financial upheavals one could experience. It is often the case that one or both of the divorcing parties will be left in need of guidance on what to do with their share of the divided assets. How best to rebuild a secure financial future is at the top of most agendas.
While it is recognised that financial aspects are far from the only issue to resolve when couples divorce, early consideration of these matters can go some way towards limiting the often inevitable loss of financial security on divorce. The ‘beware’ list is extensive, however the top two probably are:-
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NEVER ignore pensions. Pensions may seem a long way in the future or insignificant. Sometimes the complexity of schemes or delay in obtaining information will further add to the motivation to ignore them. Don’t succumb to ignoring what might form a significant part of your income in retirement. -
Seek advice early on in the process. An initial consultation with an appropriately qualified IFA will help to give confidence and guidance in how best to approach matters. I am sorry to report that all too often I am introduced to a case where damaging decisions have already been made to sell, cancel or agree to a transaction that is against both parties interests.
