Divorce, Longer Term Financial Planning

Divorce – Things to Consider for Long Term Financial Stability

Divorce is a difficult time for anybody and it’s a time where knowing the law and ensuring you are doing the right thing can make the process that little bit easier.

You can enter a divorce journey without any expertise, but it’s not something we recommend. By engaging solicitors and financial advisors who know a lot more detail around the laws and the benefits, your divorce journey may be a little bit easier.

Getting this help as early as possible is also advisable; it’s also important to engage both your solicitor and a financial advisor in the process, to ensure you have all aspects covered.

Solicitors vs Financial Advisors

Within a divorce settlement, a solicitor will likely deal with the ‘now’ but financial advisors not only consider the ‘now’, but also the future and how that looks for you in particular.

A financial planner will be able to ensure the decisions you make now will impact your future for the better. It’s a time where you can discuss new goals and aspirations financially, so you know exactly where you stand in order to give yourself the future you desire.

Things to consider

Throughout divorce, there are a number of things you will need to consider, most commonly this will be children and your marital home.


If there are children involved, they are likely to be the first thing both you and your spouse think about. Deciding how the relationship between you and your children will work and where they will live is often something to cause concern between both parties.

Your home

Your marital home is also imperative in a divorce settlement. It’s likely you and your spouse will have joint ownership of your current property, which can cause implications as this ownership will need to change in some shape or form.

Affordability is also a huge concern when it comes to the marital home; quite often, particularly if there are children involved, you will want to keep their home life as normal as possible, which may mean one spouse taking on the mortgage and remortgaging in order to do so.

However, going from having a mortgage paid by two people to then only being paid by one person, can cause issues with affordability.

In a time where emotional feeling can overwhelm any form of decision making, it’s important to try and think rationally when it comes to decisions such as your home in order to ensure you aren’t entering into an agreement that you simply can’t afford.

There are lots of options in terms of the ownership of the property. It doesn’t have to be enforced that you’ve got to take a mortgage on yourself and there are other options to consider, such as both still remaining on the mortgage.

However, generally when it comes to divorce, you will want a ‘clean break’ and having an ex partner on the same mortgage doesn’t necessarily support this idea.

Why should you engage a financial advisor?

It’s really important to engage a financial advisor to sort things aspects such as the marital home before you arrange anything with a solicitor.

This is so you can work out what you can realistically afford and the steps you need to take in order to take on a mortgage by yourself, before anything becomes legally binding with a solicitor.

There are also other assets to consider such as:

  • Pension funds
  • Savings/ISAs
  • Wills
  • Protections policies; such as life insurance

There can be a lot of money built up in the likes of a pension fund and savings account, which can also be in the name of both marital partners; so it’s important to discuss the options you have when it comes to going solo with your financial advisor.

It’s no secret that divorce can be an incredibly stressful and turbulent time, which often means you can forget about important things that need to be sorted; such as wills and pensions. Having a financial advisor on board ensures you have all bases covered so the likes of wills aren’t forgotten about, which will prevent any other issues occuring at a later date – particularly if there are children involved.

Over time you naturally accumulate the likes of life insurance and protection policies that you take out as a couple; if you don’t do anything about protection policies when it comes to divorce, the implications are significant.