Divorce can be a difficult thing. If you’re going through the process, or contemplating it, then you might already be under considerable emotional strain. What can amplify this strain is the cost of the divorce – especially when these costs are uncertain.

Getting a skilled divorce solicitor on your side will help you to represent your interests in court, and elsewhere. Thus, it’s often a cost-saving measure in the medium term.

Let’s take a look at a few of the financial considerations that might be weighing on your mind as you go through your divorce, and how your solicitor might help you to deal with them.

Splitting property

As you go through your separation, you’ll need to find an amicable way to divide all of your possessions. If you’ve been with your spouse for a long time, then it’s likely that the ownership of certain items will be disputable.

The most consequential asset, from both a sentimental and financial perspective, is often the family home. If it’s viable, the best solution is often that one partner buys out half of the property. Another solution might be to sell the property and split the cash – though, if there are children involved, this approach might increase the disruption in a way that’s not acceptable to either partner.

Pensions

If you both have a shared pension with the same provider, splitting it in such a way that you both enjoy equal incomes might be desirable. You might do this with the help of a chartered planner, and your pension provider. This often doesn’t require that you go to court, as it’s something you can easily agree on together.

Sharing debts

If you jointly owe money to another party, then it might be desirable to get this paid off in order to simplify the divorce. This can lower the administrative costs. However, in cases where this isn’t possible (like a mortgage on a house), you’ll need a plan for sharing the debt. This involves working out the legal owner of the debt.

It’s usually preferable to pay off high-interest debts, like credit cards, first. If you need a new mortgage, or you’re moving into rented accommodation, this will help you to avoid the extra costs that come with your credit score being affected.

Lifestyle changes

Life as a recent divorcee might be more costly, especially if you aren’t used to having to manage your money. Generally speaking, it’s better to err on the side of frugality. Perform a frank assessment of your finances, and devise a budget for your life as a single person. You can dial up your spending later on if you feel that it’s justified and that your income can support it.

Child Maintenance 

When children are involved in a divorce, child maintenance is another financial consideration. The parent who has the primary custody of the children may be entitled to receive financial support from the non-custodial parent. The amount of child maintenance can vary based on the income of the non-custodial parent and the number of children involved.

Your solicitor can help you navigate these agreements to ensure that the financial support is fair, and that you’re not left struggling with additional financial burdens after the divorce. The government has guidelines on child maintenance, but your solicitor can also advise on more complex arrangements if necessary.

Alimony or Spousal Support 

In some divorces, one spouse may be entitled to alimony, also known as spousal maintenance. This is financial support paid by one spouse to the other, typically when there is a significant difference in income or one spouse has been out of work for a long period, perhaps due to childcare or supporting the other’s career. The amount and duration of alimony payments will depend on the specifics of your situation and can be negotiated between the parties involved.

Again, a solicitor can assist with these discussions, ensuring that the financial settlement is as fair as possible, and helping you avoid any unrealistic expectations or obligations. If alimony is being paid, it's essential to factor this into your long-term financial plans.

Tax Implications 

Divorce can have tax consequences that you might not have considered. For example, splitting assets may trigger capital gains tax, depending on the type of assets involved. The sale of property or investments could also result in a tax liability. Your solicitor will be able to explain any tax implications related to your settlement and may advise you to consult with a financial planner or tax specialist to understand the full impact.

Moving Forward 

Divorce can feel like a major upheaval, and while financial considerations play a large role in the process, it's important to remember that they are not the only factors to keep in mind. Emotional support, including talking to family, friends, or a therapist, is also crucial during this challenging time.

In conclusion, while the financial aspects of a divorce are undeniably important, with the right professional support, you can make informed decisions that will help you to move forward. A skilled solicitor will not only advocate for your financial interests but will also provide clarity on the process, helping you to focus on rebuilding your life after divorce.

Further Reading on Financial Considerations During and After Divorce

If you're looking for additional tips on how to manage finances during your divorce, these resources can help guide you through the process:

• 8 Tips to Save Money During and After Your Divorce: This article provides practical advice on how to reduce costs during your divorce and maintain financial stability afterward.

• What Is Included in a Financial Settlement During a Divorce?: This guide explains the components of a financial settlement during divorce, helping you understand what can be included and how to negotiate the best outcome.

These resources can offer valuable insights and tips to ensure you're financially prepared as you navigate your divorce.