Divorce and Financial Advice - finding fairness
Divorce & Financial Advice
Seeking financial advice while going through a divorce isn’t likely to be high on anyone’s agenda, but financial advisers can play an essential role.
The support of an adviser can be particularly beneficial to women (*31% of whom said they were financially worse off in the year following their divorce) compared to just *20% of men.
An advisor can work with your solicitor to discuss the financial situation around divorce and the long-term financial implications. We can also tackle the taboo subject of pensions.
A quarter of women waive rights to their partner’s pension in a divorce settlement despite having a short fall in their own income. A man in his early 60’s will on average have 3 times the wealth of his wife by comparison. Not understanding the true value of your partner’s pension in a divorce settlement can be a costly decision.
There are a couple of options. A Pension Sharing Order is one – pension assets are split between the couple, creating a pension debit against the member’s pension benefits, matched by a credit for their ex-partner.
Another option is Pension Off-Setting – this entitles one partner to keep their pension benefits while giving the other a greater share of the couple’s other assets. In most cases the pension is offset against the couple’s property.
For further advice and support on pension sharing or financial support through divorce, please contact our Wealth Management team
*Legal and General