Dealing With Divorce
A revolution in family law finally removes the need for blame as a basis for divorce. No one enters into marriage expecting it to end in divorce. However, it happens for many couples.
It can be an emotionally charged time but there are things you can do to make the process go more smoothly. Keeping a level head whilst negotiating a financial settlement is vital.
From 6th April 2022 no fault divorce came into effect in England & Wales. This is a revolution in family law removing the need to blame one party for the marriage breakdown.
No more need to fit one of the five facts historically required to get a divorce ratified or wait for the minimum two year separation period.
This will hopefully lead to more amicable resolutions. If both parties agreed the marriage has broken down irretrievably then a joint application for divorce can now be made.
If you find yourself in this situation here are 5 points to consider.
- Seek professional advice immediately. Your financial adviser can help draw up a list of joint and personal assets so legal advice is based on accurate information.
- You should seek to cancel all shared finances to ensure an unscrupulous partner doesn’t take advantage of the situation.
- The timing of the process is also important. During the divorce process there is a window of time where a spousal tax exemption applies and then drops off.
- Splitting pensions is very common. There are two main ways of dealing with this. Pension Sharing is one and Pension Offsetting is the other main route taken.
- The final point is to budget for your new future as your lifestyle, income and financial situation will be very different in the new post divorce world.
If you are facing the prospect of divorce and want a guided hand to help on the financial side, Michael at Oyster Financial Planning is here to help you.
