A split decision?

A plan should be put in place to ensure financial independence for both parties

- 

If you’re splitting up, these are the financial considerations according to the experts...

1. Identify all assets and liabilities Make a detailed list of all your assets and financial liabilities. “There’s a requirement for full and frank financial disclosure, and a good starting point is to identify all assets and liabilities, including property, savings and investments, pensions, businesses and debts - both joint and personal,” Stephanie advises.

2. Understand expenses John advises both parties to keep a clear record of all income and expenditure following separation, as this will form the basis of any assessment of spousal maintenance or financial support for the lower-earning party.

“Consideration should also be given to anticipated future expenses, as a short period of record-keeping may not reflect typical annual costs, particularly where irregular or substantial expenses arise, such as vehicle repairs, school fees, or other significant outgoings,” he says.

3. The family home Often the most pressing concern when a couple separate is the family home. Stephanie says options include selling it, one party buying the other out, or a deferred sale until children reach a certain age (referred to as a ‘Mesher Order’).

She says the desire to stay in the property, particularly if your children live there, is understandable, but warns that when a home is mortgaged, lenders will reassess affordability.