Can I afford to get divorced?

Although the end of a relationship will almost certainly lead to emotional upset for both parties to the marriage, an often almost as important thought will be present:  “how am I or my former spouse going to survive financially?”

Cost of Living Crisis

We’ve been seeing news of the cost of living crisis almost constantly for a number of years now.  It’s hard going to make ends meet with 2 salaries.  How can newly single parties fend for themselves financially?

The research

Legal and General recently published research into the costs of divorce.  Their report is here: https://group.legalandgeneral.com/en/newsroom/press-releases/holy-matrimoney-272-000-delay-divorce-due-to-cost-of-living-pressures

The key findings were:

• One in five recent divorces were delayed for financial reasons, including income concerns, cost-of-living pressures and the cost of divorce

• However, divorce itself hits the bank balance with annual incomes falling by an average of £9,700 in the year after a separation

• One in three divorces occur over the age of 50 and see people save £63 a month less towards their retirement as a result

It is apparent therefore that divorce will affect you financially.

The key point however, is if the divorce is inevitable and you have reached a point where you are unable to continue in your marriage, and you do need to divorce, you really must make sure that you safeguard your financial future in the best way possible.

Potentially the best £115 you may spend in your divorce

If you’re considering divorce or your partner has indicated that they wish to proceed with a divorce or separation the best advice is always to speak to a qualified family lawyer about the process and the options as soon as possible.

We at Keelys Solicitors offer a fixed fee half hour appointment in person, via remote video or telephone.  For £95 plus VAT we will make you aware of the law in relation to divorce and what financial issues may apply to your case and highlight where further steps should be taken, if appropriate, to safeguard your financial future.

The L&G report states that in two out of five divorces (40%), people felt that it wasn’t an equal divorce financially, with one party being favoured. Despite this, just 7% of people will consult a financial adviser as part of their divorce.  We have extensive experience in dealing with business assets and pensions and will be able to signpost you to experts where necessary.

Not taking advice can have long-term financial implications. Only 31% of people who had divorced had signed Clean Break Orders, meaning that more than two-thirds (69%) could be liable to a future claim from their ex-spouse.  In our experience this often arises nearer to pension age when a former spouse may look to achieve a portion of their former spouse’s pension.

Fixed fees

At Keelys Solicitors we are able to resolve and finalise your financial divorce orders by way of final consent orders.  We have clear fees if you have agreed an order so that you know what it will cost.

Securing your future financial needs

The Legal and General research found that while divorcing couples often consider the value of their family home (58%), just 20% consider pensions when dividing assets with their partners and 29% actively waive their rights to the value of them.

The Pensions and Lifetime Savings Association (PLSA) has introduced new guidance designed to support private sector occupational pension schemes when providing information to scheme members on Pension Sharing Orders (court orders that help couples divide their pension funds upon divorce). The Pensions Sharing on Divorce Guidance can be downloaded here https://www.plsa.co.uk/Portals/0/Documents/Policy-Documents/2023/PLSA-pension-sharing-on-divorce-guidance.pdf

At Keelys Solicitors we have the experience to know when you need to consider expert pension or business reports.  Our role is to consider your current and future needs and provide advice on how those needs can be met.

The real question then, if divorce is on the cards, is ‘can you afford not to speak to a Solicitor about it?’

Contact our family team for more information:

Jslater-williams@keelys.co.uk | 01543 420011

mbell@keelys.co.uk | 01543 420031

jcox@keelys.co.uk | 01543 420047

nmalik@keelys.co.uk | 01543 420041