7 February 2022
Being in your 40’s is the typical age when you are likely to divorce. The average for men is aged 46 and for women aged 43.
The reality is that divorce can be expensive as dividing assets means managing household costs on your own going forward and basically halving what assets you have with your spouse.
What should you do with the capital you receive?
You need to invest your capital.
If you get a lump sum do not waste it on luxury goods but look at investing in a property. Speak to a financial adviser or your solicitor. Investments tend to out-perform cash long-term. You might prefer to invest in a property than rent long-term.
Do not litigate in court?
Try not to drag out your divorce battle through the courts and look at reaching an amicable settlement through your solicitors who can help with mediation.
Do not buy a house like the one you had when you were married
Two incomes would have allowed you to afford a better home. On your own downsizing is more realistic due to the cost of borrowing and running a house solely.
Start by speaking to a mortgage lender and be realistic in what is affordable to you.
Return to work
Many stay at home parents may prefer not to return to work but the reality is, it is a way to allow you to manage your costs and get some wealth back that you may have lost on divorce.
Pensions
You solicitor will advise you of the importance of sharing pensions that accrued during your marriage. They should not be disregarded.
Court Order
Make sure the division of assets is sorted in a binding divorce settlement organised by your solicitor.
Tax
Consider the tax implications on pensions and Capital Gains Tax on property transfers. Get advice from your solicitor and financial adviser or accountant on the most tax-efficient way to proceed.
Divorce can be sorted in an amicable and reasonable way and spending money with an experienced solicitor who specialises in the financial aspects of divorce is the most cost-efficient way to deal with these matters.
