Financial Consideration on Divorce

Feedback from financial advisers suggests that spouses tend to make a number of costly mistakes when considering their options on divorce.

  1. Because of the emotional attachment to the family home, some tend to overlook the mortgage and other costs and might more suitably consider down-sizing and taking a share of their partner’s pension.
  1. If the sharing of a partner’s pension is appropriate, account should be taken of the fact that a divorcing spouse or civil partner may be less able than their partner to accrue additional benefits. Consequently, a more favorable split than 50/50 might be sought.
  1. Failing to question the values attributed to assets can be another costly mistake. Each party must make a full disclosure of assets, but some assets, such as pensions, are difficult to value and others, such as small businesses, may require specialist advice.
  1. Some assets, for example cars, depreciate in value, and it may well be preferable to take cash instead.
  1. Failure to formalise financial arrangements in a consent order could result in the divorced partner being able to make claims on assets acquired after the divorce.
  1. Whilst with the passage of time any claims made following divorce would have a limited chance of success, it should be noted that it is still possible for your ex-spouse in some circumstances to make a financial claim against assets acquired after the divorce. You can protect against this with a Clean Break Order.’

If you are interested in an initial consultation meeting with out charge to discuss this, or any other aspect of financial planning then please contact Andy Hammond, an Independent Financial Advisor in our Investment Management Team on 0115 989 5292 or by email to