A split decision?

A solicitor and a financial adviser tell LISA SALMON the financial security measures couples who are breaking up need to take.

- LISA SALMON

FAMILY solicitors often report a surge in inquiries about divorces in January, leading to it being dubbed 'Divorce Month'.

Although it’s thought the January breakdown in marriages or separation of unmarried couples may be linked to the stress of the festive season and seeking out new beginnings in the New Year, financial problems are also thought to play their part - and are a huge consideration if/when any separation or divorce is finalised.

Indeed, research by Austin Lafferty Solicitors has found 39% of UK adults who are either married or in a civil partnership would be worried about how a divorce or separation might affect their financial security, and of these, 69% said they might delay or reconsider their decision to divorce or separate due to financial concerns.

John Roberts, a partner and director at Austin Lafferty, says: "Each party needs to find a solution that gives them financial independence which allows them to live separately without the need to support the other."

And Stephanie Potter, pension on divorce expert at Shackleton financial advisers, says: "Divorce isn’t just a legal process, it’s a major financial restructuring, and decisions made early in the process can have long-term financial implications.

"It's not only the emotional fallout that causes lasting damage, but the financial decisions made under pressure. Understanding risks and opportunities can make a real difference to life after divorce or separation.

"The greatest difficulty will be separating emotion from financial reality. Decisions made to achieve short-term comfort or symbolic wins can undermine long-term security."

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

1. Identify all assets and liabilities