Top tips for resolving your finances following divorce and separation
When a relationship breaks down, there are many options you will need to consider. Rosie Beaven, Solicitor in Trethowans’ family team, gives her tips for resolving finances upon divorce or separation.
Speak to a Solicitor
Taking legal advice will give you a better understanding of your legal rights and responsibilities. It will also give you a clearer picture of the process and the options available to you. It is important to instruct a Solicitor who you feel comfortable with and who you can be open and honest with. With all the right information, your Solicitor can guide you through the legal complexities and tailor their advice to your unique situation.
Consider alternatives to Court
Attending Court is not a requirement of resolving your finances and it is not always necessary. In fact, it is often considered a last resort used only where parties cannot reach an agreement. There are many other ways to try to reach an agreement, including methods of Alternative Dispute Resolution (ADR) such as mediation, collaboration and arbitration. Helen Clarkson explores these in more detail here
Provide your Solicitor a ‘pen picture’ of your finances
Write out a list of your current monthly expenditure and a list of all of your assets, including properties, vehicles, savings, pensions and items worth over £1,000. This can be a really helpful starting point for your Solicitor.
Seek financial advice
Speaking to an Independent Financial Advisor (IFA) at an early stage can be really informative and collaborating with them throughout the process can give you clarity and peace of mind. You may also wish to contact a mortgage broker and ask them about your mortgage raising capacity. They will be able to advise you as to how much you could raise on a mortgage and what requirements there might be.
Enquire about your entitlements
If you are living separately to your spouse or partner, you may wish to contact your local council to enquire as to whether you are eligible for a council tax discount. You may also be entitled to other benefits such as Universal Credit.
Consider your best case and worst case scenario
For many, the resolution of the finances is a compromise; there are no ‘winners’ when a relationship breaks down. Consider your current situation and what you think would be the best outcome and the potential worst outcome. This can help you assess the different options for resolving the finances with your Solicitor.
We can support you with the resolution of finances in divorce, please contact one of our Trethowans’ Family team today on 0800 2800 421 or contact us here to arrange a confidential free consultation to discuss your options.