Divorce: Helping You Make the Right Decisions
During divorce, untangling finances is complex and the decisions made at the time can have significant and long-lasting consequences for you. Decisions may be made in an emotional environment and the realities of the financial decisions may not be revealed until much later on.
Alongside your solicitor, a financial planner can play a key role during a divorce. Many people only turn to a financial planner after their divorce settlement has been agreed, but involving your financial planner early on can help you to shape the divorce settlement with your best interests in mind. Your financial planner will look at the long term implications of decisions made during divorce and how these will work for you in the real world.
Usually divorce involves reaching an agreement on splitting a range of different assets to create a solution that meets both your and your ex partner’s needs and also makes financial sense. It is also important that it should also have minimal impact on your tax position.
The amount of Income Tax and Capital Gains Tax you will need to pay needs to be carefully considered. During a divorce, there is a window of time where a spousal exemption applies and then this drops off. This means that any divorce settlement after a certain date would fall outside spousal exemption and Capital Gains Tax becomes payable. Your financial planner can help guide you through this towards an outcome that works for both parties, as it can be an extremely complicated area.
Your financial planner can help you to make the right decisions, reorganise your life and take control of your financial future.
If you have any questions, please contact a member of our team who will be happy to assist you.