4 tips for your pension in divorce

Divorce can be enormously stressful and an emotionally difficult time. When it comes to your pension pot, a divorce could drastically affect your retirement plans.

We have put together four tips to consider when taking control of your financial future during a divorce.

It is important to take an active interest in your finances and know your options in-case you do find yourself splitting from your partner.

#1 – Keep communicating about your finances together

It’s easy to leave your finances to your partner, especially if they are naturally more enthusiastic about it. However, letting your partner take the responsibility could leave you in the dark if you do split up. Especially when it comes to knowing what you have or what you may be entitled to.

Talk to your partner about your savings goals. Take a shared interest in your spending and keep the conversation going. You’ll soon find you feel more in control and reassured that there are no financial surprises around the corner.

#2 – It’s not just about the home

During a divorce a couple will often focus on the family home. However, the next biggest asset can be their combined pension savings.

The Pensions Policy Institute found that 7 out of 10 divorce settlements didn’t take pensions into account.

You may be entitled to a portion of your partner’s pension if you haven’t had the opportunity to save for yourself or they may be entitled to a share of yours.

If you are unsure and would like to talk through your personal circumstances. Please Book a Meeting to speak to an Independent Financial Adviser about your pension in divorce.

#3 – Understand your pension options

There is more than one way to deal with pensions in divorce. It’s important to understand the options and to take into account all possible eventualities when deciding what approach to take.

Pensions can give you more flexibility when it comes to funding your retirement. Most types of pensions can be split, but this can be a complicated area. If you are not sure what’s right for you, speaking to an Independent Financial Adviser about your finances can alleviate that stress.

#4 – Getting clarity

When entering into a divorce most people use a solicitor to help with the proceedings, but what about the finances?

An Independent Financial Adviser can give you individual support and help you to identify your assets, including your pensions, and advise you on how much you’ll need in retirement. You will gain a much stronger understanding of your own personal circumstances and realise what you may be receiving or giving up.

An Independent Financial Adviser can also help you to organise your assets and set goals for the future once your divorce is complete. It’s about giving you the clarity and reassurance to achieve aspirations in your next chapter of life.

Don’t leave your finances down to your partner. If you are concerned about your finances during divorce, book a free meeting with our team today. Gain clarity on your financial circumstances so you can move forward in confidence.

Call 01244 347583 or email info@innesreid.co.uk

This article is not personal advice.

Source, The Pensions Policy Institute

 

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