![]() ![]() Different policies cover different percentages of your income, and kick in after a certain period of being unable to work. Policies need not be expensive, and can be the difference between living comfortably or adding financial stress to an already difficult situation. Life and disability coverįinding yourself without a partner, possibly having been part of a couple for some time, can make you feel financially vulnerable – what will happen if you can’t work or suffer a financial setback? Whether or not you have an existing pension, it is important to start, or to build up, retirement savings. Specialist advice should be sought in relation to the value of a pension and how it can be shared. The pension fund can be split and placed in another fund in the name of the other spouse, or sometimes the spouse can get membership of an ex-partner’s pension scheme. If one spouse has a substantial pension and the other, who worked in the home maybe, has no pension, the court can order part of the spouse’s pension be paid to the other, or to a dependent child. The court can treat a pension as an asset of the separating couple and order that it be divided into whatever shares are considered appropriate. A financial adviser will be able to pinpoint the best option in each case.Īfter a shared home, the most valuable asset which a separating couple can have is often a pension. There is likely to be tax or charges if you sell or transfer investments, or cash them in. Existing investments may also form part of a financial settlement on divorce, or need to be divided, so you need to negotiate with each other as to how this happens and take advice.Then make sure you have six months’ expenses in savings, before you next think about investing. If there is spare cash, firstly pay off any expensive debts like a credit card or loan.Or, the family home may be sold and any profit after the mortgage is paid off, shared between you both. Spouses who sacrificed work opportunities for family, and supported their partner, may not be able to re-join the workforce at a reasonable level, and so the courts can offer spousal support, and provision for children. You may get a lump sum as part of a financial settlement, and this is where professional advice is important. Managing your money takes time but it’s worth it for peace of mind. Also check the assets covered on your home policy, in case items of value were sold or belonged to your former partner. If buying or renting a new property, work out what you can afford, based on an annual budget and the deposit that will be required.It is important to establish credit in your own name, with a credit card or bank account, particularly if you anticipate needing to borrow or get a separate mortgage.Work with your ex to promptly manage joint affairs, particularly loans or overdrafts, as either of you could be asked to repay the full amount if one party defaults.Open a separate bank account, create your own budget, and get your credit cards, bank accounts and insurance policies in your name only. Begin to structure your life as a single person, ideally before your divorce is settled.If you are self-employed or have received a lump sum divorce settlement, work with an accountant or knowledgeable contact on a new tax projection, based on your income and overheads, and any gains coming from a settlement. ![]() ![]() If you’re not earning, try to get in the habit of regular saving for rainy day money.Changes in income often force changes in spending, and if not managed properly, cash flow problems can cause significant heartache. Prepare a budget, so you know exactly where you stand on the daily living expenses and big ticket items like the car, mortgage or rent, insurances etc. This will be crucial in understanding what you can afford to spend.Take stock of your assets, income and outgoings, and determine future financial needs and goals. ![]()
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