I need to reorganise my finances on divorce

Alison was working part time and looking after two school aged children. We met her shortly after her husband had left her and she was understandably emotional and confused. He had previously dealt with their joint financial affairs and whilst she had a lot of the relevant paperwork she felt she needed help in pulling it all together.

How we could help

At the outset it was clear that Alison lacked the confidence she needed to see that she could manage her affairs successfully on her own. Whilst she understandably just wanted everything to carry on as it had before, after a couple of meetings we were able to help her establish her most important priorities. These were making sure her children could finish their schooling, with the least amount of disruption, and building up a pension fund, as she currently had nothing in place but the state pension.

We patiently went through the information she had to hand to enable us to produce a list of assets and liabilities, together with assessing the level of her ongoing expenditure. These were not only useful for ourselves, but assisted her solicitor in his negotiations with her ex-husband’s advisors, as did our report on her ex-husband’s pension scheme, which was one of the most valuable assets to be considered.

It is always difficult to accept the changes that are often associated with divorce, such as selling the joint matrimonial home, but at each stage in the negotiations we could help Alison see the alternatives she might have. Thus she was able to confidently assess her future position and eventually a settlement was reached without the need for costly court proceedings.

The outcome

Whilst the final settlement did not give her everything she wanted, she was reassured that there would be sufficient money to stay in the area until the children had finished school and then she would have the choice of working more or moving to a less expensive area.

Some time later, we were delighted for Alison when she telephoned to say that she had met a new Partner. She had also recently inherited a residential property and bearing in mind her earlier problems she was very anxious to ensure her continued financial stability following her Partner moving in with her.

We were able to update her cash flow to explain the immediate implications for her original divorce settlement, which would result in a reduction of maintenance. We then went on to discuss the various taxation implications of letting or selling the residential property and to show her whether this was likely to provide sufficient alternative income, bearing in mind the differences in tax treatment. This gave her the confidence to make her own informed decisions for her future.