Navigating Financial Matters in No-Fault Divorce – Two Years On
With the implementation of a no-fault divorce system in 2022, there has been a notable increase in the number of couples dealing with divorce proceedings themselves and not obtaining a Financial Order. This is a worrying statistic as many people are leaving themselves open to financial claims later in life and are not taking advice as to the financial impact of their separation.
The Importance of Legal Advice
When going through the divorce process, it is important to also deal with the financial issues that arise, and it is recommended that proper legal advice from a solicitor is taken.
The average age of someone going through a divorce is now mid 40s and statistics show that many go through the divorce process without consulting a solicitor or financial advisor. This demographic will often have worked hard to build up their assets, savings, and pensions and if the assets are not dealt with properly upon separation, this can have a huge impact on their financial future.
Protecting Pension Assets
Pensions can often be the largest, or one of the largest assets in a marriage and not seeking appropriate advice could negatively affect future retirement plans and lifestyles. It is important that pensions are considered appropriately, and that legal advice is sought at an early stage in the divorce process.
Preserving Property Assets
Older couples divorcing may also have paid off much of their mortgage and built up significant equity in their homes. One or both may have received an inheritance. It is important to seek advice about the options for dealing with the family home at the outset of a separation. It may be that there are options you have not thought about which could prevent the need for having to sell the family home, for example.
The importance of Financial Settlements
Financial claims are not automatically resolved as part of the divorce process. It is essential that you seek advice from a solicitor in relation to those financial claims and once a financial settlement is reached a Court Order will need to be prepared for that to be made legally binding. Seeking advice to secure your financial position post separation is crucial.
At Wolferstans we have a specialist team of family lawyers who can advise you. If you would like to find out more, contact us on 01752 292201.