With couples locked down together for months on end whilst juggling work and possibly home schooling, the past year has sadly put huge strain on many relationships.
With a post-lockdown divorce boom predicted by many family lawyers, it’s tricky to know where to start regarding the division of finances.
On divorce, a couple need to decide how to fairly divide financial assets including their home, money in current and savings accounts, pensions and investments. They may be entitled to a portion of their ex-spouse’s pension or a share in the sale of their property, for example. They may also have to make decisions about the value of maintenance payments to maintain their and their children’s lifestyle. Heightened stress and reduced financial circumstances caused by the pandemic may make coming to an agreement more challenging. If they are unable to agree, they may still be able to settle out of court by hiring a trained mediator or collaborative lawyer. If not, they may have to ask a court to decide.
It’s good to talk
We understand this is a challenging time and can help guide individuals through how to best invest the proceeds of a settlement, divide assets tax-efficiently, set up comprehensive protection cover and manage their post-divorce expenditure.
It is important to take professional advice before making any decision relating to your personal finances. Information within this document is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK. We cannot assume legal liability for any errors or omissions it might contain. Levels and bases of, and reliefs from, taxation are those currently applying or proposed and are subject to change; their value depends on the individual circumstances of the investor. No part of this document may be reproduced in any manner without prior permission.
The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated. If you withdraw from an investment in the early years, you may not get back the full amount you invested. Changes in the rates of exchange may have an adverse effect on the value or price of an investment in sterling terms if it is denominated in a foreign currency.
Information is based on our understanding of taxation legislation and regulations. Any levels and bases of, and reliefs from, taxation are subject to change.
Tax treatment is based on individual circumstances and may be subject to change in the future.
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