Divorce extends far beyond the emotional turmoil, presenting one of the most complicated financial challenges many couples will ever encounter with decisions made during this period  often having lasting ramifications. From shared savings and mortgages to everyday living expenses, every aspect requires meticulous consideration and forward planning.

George Abouzolof, Senior Mortgage Broker at Clifton Private Finance , has identified eight crucial financial factors individuals should examine when managing life throughout and following a divorce. These encompass resolving joint mortgages and outstanding debts through to reviewing accumulated savings. He warns people must also consider their post-divorce financial landscape and future prospects, including one frequently neglected area – pensions, reports the Mirror.

The specialist has compiled a comprehensive list of considerations for separating couples. This is what he says:

Identify a true picture of your finances early

Start by identifying everything you own and everything you owe. This includes savings accounts, ISAs, investments, property, pensions, business interests and all outstanding debts.

Gather key documents as early as possible, such as bank statements, payslips, mortgage details, pension valuations and loan agreements. Having a full financial picture from the outset can help avoid delays, disputes and unexpected issues later in the process.

Joint mortgages and how they work

If you have a joint mortgage, both parties remain responsible for the repayments until the mortgage is formally changed or repaid, even if one person moves out. Common options include one partner buying out the other, selling the property and dividing the proceeds, or taking legal actions to force a sale if you can’t manage to reach an agreement.

Be careful with shared savings

Savings are often used to cover legal fees and day to day costs during a divorce, but they can run down quickly. This is particularly challenging when most wealth is tied up in property or pensions that cannot be accessed straight away.

Creating a short-term budget can help you understand how long your savings will last. It will also highlight which costs should be prioritised.

Address joint debts quickly

Joint debts such as credit cards, personal loans and overdrafts remain the responsibility of both parties until they are settled or refinanced. Even if an agreement states that one person will repay a debt, lenders can still pursue both names on the account.

Where possible, close or separate joint accounts and check your credit report early. This helps protect your credit profile and puts you in a stronger position if you need to apply for finance in your own name later.

Plans when you have children

For couples with children, financial planning needs to extend beyond the immediate settlement. Child maintenance, childcare, education costs and housing stability should all be factored into any agreement.

Thinking ahead about how expenses may change over time can help avoid financial strain later.

Never overlook pensions

Pensions are often one of the most valuable assets in a divorce, yet they are frequently underestimated. In the UK, pensions built up during the marriage are usually treated as part of the shared financial pot.

This is often handled through a Pension Sharing Order, which splits the pension into separate pots and gives each person control over their share. The division depends on factors such as the length of the marriage, future income and retirement needs.

What about life after divorce

Once the settlement is agreed, focus on long-term affordability. This includes housing costs, everyday expenses, childcare and retirement planning.

In some cases, short-term finance can be helpful where assets are tied up or a property sale is delayed. Options such as bridging loans can sometimes help manage temporary cash flow gaps, but they should only be used with professional advice and a clear exit strategy in place.

Seek advice

Divorce is rarely straightforward, but breaking financial decisions into clear steps can make the process more manageable. Getting proper legal and financial advice can help you make informed choices, avoid costly mistakes and move forward with greater confidence.

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