Will my finances survive my divorce?
This week has been deemed "Dispute Resolution Week" by family lawyers who are raising awareness of dispute resolution as a modern, constructive and respectful method of resolving disputes. Today family lawyers are asking separating couples who are concerned about whether their finances will survive their divorce to consider a collaborative divorce or to try mediation or arbitration.
Savings and investment products have never been more complex than they are today. Money can be held in a wide range of investment vehicles with different tax treatments. Your savings may range from old policies with complex guarantees to new investments incorporating derivatives and hedge fund strategies. Personal finance is rarely straightforward and as separating couples embark on a divorce, they often wonder "Will my finances survive my divorce?"
The factors that have the most impact on whether you end up with a fair settlement that has protected and maximised your wealth include;
- The willingness of both parties to fully disclose all financial information
- The ability of all parties to assess the true value of the assets held, and
- Understanding how assets can best be split to suit your individual future financial goals and agreeing a mutually beneficial split of assets.
With dispute resolution, both parties agree to make decisions that suit you and your family. This process of working together as a team, in a respectful manner and with open communication means that all finances are fully disclosed and time can be spent to make sure that the value of the assets is fully understood.
You each with your lawyers/mediators to fully understand more complicated investments and ensure that you maximise your post-divorce wealth and avoid expensive mistakes.
Experts can also help divorcing couples make positive financial plans for the future and ensure that the finances are separated not just in a fair way, but in a manner that helps both achieve their future financial goals.