How to minimise the financial damage of a divorce

Family

Going through a divorce is one of the most painful life events and it is not just your emotional welfare that suffers. Separating couples take massive hits on their bank accounts, too. Over the past 3 years, the cost of divorce has risen by 17%, with the average pair spending between £15,000 and £35,000.

It is important during this difficult time to try and stay focused on getting the best result for both parties, concentrating on your family and finances. To try and effectively manage the costs associated with divorce, we recommend the following steps.

Seek professional help

It is likely that you will need help in establishing the right direction to go in, which is where specialist divorce lawyers become vital to a successful outcome. Totally impartial, they will be able to advise on realistic outcomes and a strategy to ensure the best possible result for you and your ex-partner. They are expert negotiators and are used to tense and complex situations. Utilising their knowledge and experience is the best way to ensure you get a fair settlement.

Work out your finances in advance

Certainly, one of the trickiest parts of divorce is deciding how to split your mutual assets. You must review all your assets and work out any savings account balances, current equity in property, any debt you hold on credit cards or loans, the price of any valuables and both yours and your ex-partner’s disposable income before proceeding. Making these calculations will tell you how much your assets are worth. You can then discuss this with your divorce lawyer who will decide on the best financial deal possible, potentially saving both parties a lot of money.

How to Minimise the Financial Damage of a Divorce (1)

If you own a property, sell it

If you and your ex-partner own a home, one of the best ways to financially benefit is to sell your home and split the assets rather than one of you taking sole possession of the property. You can then use the money you have both earnt selling the property towards either renting or buying separate homes.

Try to reach agreements with your ex-partner

It may seem obvious, but coming to mutually beneficial agreements with your ex-partner on how to split your assets will save you money and time. Where possible try to avoid solely communicating through mediators and middle men – it will dramatically cut costs.

Sadly, 42% of marriages in England and Wales now end in divorce. Although most of us never think it will happen to us, it is always wise to be prepared. Take an active role in your family finances – if the unforeseen does come to fruition, you will have a much better handle on your financial situation and will be able to fairly resolve and finalise your split.

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