Have you considered the financial implications involved in a divorce? 

Author: Nicola Peak

Chartered Financial Planner & Chartered Wealth Manager

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When preparing for a divorce or dissolution of a civil partnership, it can mean making incredibly important decisions during a highly emotional time.

It is important that any decisions made have the right impact on your future and will maintain your standard of living, particularly when it comes to separating your finances.

Enlisting the help of a Chartered Financial Planner to work alongside your lawyer, can make these decisions more measured and meaningful to achieve the right outcome for you.

During the process, you will need to consider your assets, which not only include your home and cash at the bank, but also your investments and maybe most importantly, your pension schemes.

  • Will you be entitled to a share of a pension scheme as part of the divorce or dissolution settlement?
  • Will your pension scheme need to be shared?
  • Will you lose valuable spousal benefits from any Defined Benefit Schemes?
  • Will you lose any benefits from your Defined Benefit Scheme?
  • Will your pension Lifetime Allowance be impacted?

It is important to ask the correct questions to understand your position once the divorce or dissolution is finalised, particularly so you have the right schemes set up for any benefit you are entitled to.  You will also want to update your pension nominations so that any death benefits are directed to the people who you wish to inherit.

Another area that is often forgotten about is insurance, i.e. life, critical illness or income protection.

  • Are there any joint policies that will cease on divorce or dissolution that need to be replaced?
  • Do you have any individual policies that need to be reviewed so they not only continue to meet your needs, but also remain affordable?
  • Is there a need to have protection for ensuring maintenance continues to be paid where there is a death or illness of a former spouse/civil partner.

A Chartered Financial Planner will help you during the divorce or dissolution by making sure the right questions are asked.  When it’s time to start making important decisions for your new future, this may include building a financial strategy for the road ahead to include such things as:

  • Assessing the level of income you may need to maintain your standard of living and how you can achieve this tax efficiently.
  • Making sure you have the best level of protection should anything happen to you in the future.
  • Ensuring any lump sums that may be received are invested in the most appropriate way.
  • Reviewing your estate planning so your wealth is directed to the people you wish to inherit.
  • Ensuring that, together with your solicitor, your Will and any Lasting Power of Attorney documents are updated in line with your objectives.

If you are looking for financial planning advice, please speak to a member of our financial planning team on 01223 233331 or email info@mmwealth.co.uk.


Opinions constitute our judgment as of this date and are subject to change without warning.  The value of investments, and the income from them, can go down as well as up, and you may not recover the amount of your original investment.

The information in this article is not intended as an offer or solicitation to buy or sell securities or any other investment, nor does it constitute a personal recommendation.

The information contained within this blog is based on our understanding of legislation, whether proposed or in force, and market practice at the time of writing.  Levels, bases and reliefs from taxation may be subject to change.

The Financial Conduct Authority do not regulate tax planning.

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