divorce

Alongside child care arrangements, paying maintenance and experiencing emotional upset, protecting your finances is one of the biggest concerns for married couples and civil partners splitting up. In this article, we explore the key things you can do to safeguard your finances during a divorce.

Obtain a pre-nuptial or post-nuptial agreement 

Ahead of getting married, it’s advisable to at least consider getting a prenuptial agreement. This will set out how your money and assets will be divided in the event of a divorce. This will prevent the potential for an automatic 50/50 split of a given asset during your divorce. Although they are not legally binding, courts are considering them more and more in divorce proceedings, as long as the terms are considered fair. If you are already married, a postnuptial agreement will offer similar protection. 

Get in touch with your bank 

One of the first steps you should take when seeking to protect your finances is to get in touch with your bank. If you have a joint account with your ex—spouse or partner then it is a good idea to ask them to freeze your account. This will prevent the other party from incurring any debt on the account of which you will both be liable for. This can also help you protect your credit rating. 

Contact your landlord 

If you rent a property with your ex-partner or spouse, you will need to get in contact with them as soon as possible. Find out whose name is on the tenancy agreement. If it is in your partner’s name, you may still be able to stay on and pay the rent if your partner moves out. If the tenancy is in your name, you maintain the right to stay there and are also responsible for paying the rent. If it is a joint agreement, you will need to discuss with your ex if one of you will continue renting your home when the tenancy comes to an end.

Contact your mortgage provider 

If you or your partner owns the home, then it is your mortgage provider you will need to contact. Find out whether or not your home is owned as either joint tenants or tenants in common. 

• Tenants in common means you each have separate shares which may be equal or unequal.  If you sell the property, you will receive your designated share of the equity and if you want to buy out your partner, you will need to take on their share of the mortgage. If one of you passes away before a divorce has come to a conclusion, that partner’s share will not automatically go to the other, it will be the person named as a beneficiary in their Will. If there is no Will, intestacy rules will apply. 
• If you are named as ‘Joint tenants’ on your property, you will own the home equally and the sale or remortgage of the home will need both parties’ agreement. The rules of survivorship are also different from tenants in common. If one of the joint owners passes away, their half of the equity share will automatically go to the surviving partner. 

What not to do when protecting your assets during a divorce 

Although you may feel that certain assets should rightfully remain yours, it’s important not to hide them during a divorce, for instance, by moving money to offshore accounts, transferring funds into cryptocurrencies or deferring company bonuses. This kind of activity is illegal in the UK and can lead to serious penalties from the courts. 

A final point

If you are unclear on any financial matters relating to your divorce, it is advisable to get in touch with a family lawyer to guide you through the process and to help safeguard your finances.

Are you getting divorced and want to keep it as stress free as possible? If so, your first thought will be to connect with divorce law specialists like Major Family Law. But what else can you do to ensure all matters relating to your split are as smooth as they can be? Here’s six useful tips to keep the process as peaceful as you can.

1.       Don’t rush

It’s understandable to approach your divorce with a ‘let’s get this over and done with’ attitude but hurrying the process along will be frustrating and not necessarily fruitful. In most cases, you will need time to consider your options. Although it can be difficult to set a slower pace when your emotions are running high, taking your time on things will be ultimately less stressful. 

2.       Keep quarrels at bay

With so many decisions to make about finances, children and property, avoiding arguments with your ex can seem virtually impossible.  While you need to make sure you are getting what you deserve, try to strike the balance between standing firm on the important matters and at the same time, allowing the smaller issues to fall by the wayside. Getting entangled in minor disputes will only prolong the process and will cost you in the long run.

3.       Keep the children away from conflict

Conflict throughout your divorce will also impact any children you may have. No matter what their age, your children will be affected by your divorce, so it’s important to keep the impact as minimal as you can. Do not let your children become involved in any arguments by asking them to exchange messages or talking negative about your ex to them or around them. This will put them in a compromising position.

4.       Follow your moral compass

When it comes to your children, your ex and your wider family, you should always seek to act respectfully and with integrity. When elements of your separation seem unjust, it can be easy to slip into responding with contempt and anger but this will not serve you in the long-term. Try to take a step back from the divorce, if only for a short time, to help you gain perspective on things and focus on the ultimate outcome you are seeking.

5.       Put yourself in your ex’s shoes

It’s a tall order to empathise with your ex when you are going through a divorce, especially if it’s particularly acrimonious split. However, it is often the case that one party needs more time to come to terms with the change. If, for example, you are the one who has initiated the divorce and had time to contemplate things before you decided to end your marriage, your former spouse may not have caught up with you emotionally. Understand that they too will need time to accept what is happening and try to extend some empathy throughout the process.  

6.       Seek advice from a professional 

Finally, if you are struggling to reach agreements with your ex, mediation is often a helpful path for finding mutually beneficial resolutions without a lawyer. The mediation process involves a third person who is impartial and will listen to both sides and provide guidance on the next steps in reaching agreements. If you or your ex-spouse, feel mediation is not the right avenue, you will need the help of a family lawyer. Ask for recommendations from friends and family who have had a good experience with a law firm. Before you speak to a suggested law specialist, write down the questions you want to know the answers to and be ready to share advice by taking along any relevant financial information to ensure you gain the most from an initial consultation.