According to life and pension firm Phoenix, divorce is leaving many thousands of women facing financial hardship after divorce, because they didn’t get the right advice when their marriage ended.
Phoenix’s findings show that one in three women will be unable to make any further savings, two in five did not fully understand their financial settlement that they received as part of their divorce, and two-thirds of female divorcees expect that they will have to rely on the State pension in retirement.
Perhaps most worryingly, one in four of the women who took part in Phoenix’s survey had opted for a DIY divorce and did not receive any professional help in sorting out their finances.
The right advice can help ensure a better financial outcome for both sides after divorce and Shellie Wells from Phoenix said: “Not only have many women given up rights to their husband’s pension provision, they have also often stopped paying into their own pension and may have lost contact with savings they had.”
Sensible financial planning should start long before divorce looms and even when things are going well in a relationship, couples should try to keep some assets in their own names. This is the best way to allow each spouse to use their individual tax allowances, and in the event that one of them should die, the other spouse will be easily able to access the cash.
On the other hand, leaving the care of family finances entirely in the hands of the other partner can be dangerous if the relationship breaks down.
At Dovetail we know that one of the biggest worries for separating couples is the division of family finances and if you would like further information on our services, please don’t hesitate to get in touch.