how divorce could affect your later life plans

Divorce in later life is becoming more common with 1 in 4 divorces occurring after the age of 50! It’s important that you are aware of how divorcing in, or as retirement approaches presents you with a couple of financial challenges.

The main point to consider is that later in life, your assets are often larger: more equity in property, investments and of course your pension, which means you’ve got a lot more to protect.

Take your pension for example, approaching retirement with a defined benefit pension (final salary pension), you’ll be expecting a certain amount of income to come from this or perhaps even a lump-sum. This amount may have been sufficient to support your cost of living whilst in a couple together with other shared benefits, but now you’re getting a divorce, your pension is at risk of getting split which as you can imagine compromises your retirement.

Obtaining sound financial advice early on can make a real difference. It can help you gain clarity on the impact of divorce on your individual financial position and help you understand how you can protect your assets. You may have family or friends who want to support you through a somewhat difficult time and process, but please remember their advice is often emotional, it’s important to consult a professional advisor who can help you make sensible decisions that consider your financial future and stability.

People often turn to a financial advisor after their divorce settlement is agreed, when it’s too late! Involving a financial advisor earlier on in the process can help shape the settlement so that you’ve got a better chance of obtaining a desirable outcome.

If you or someone you know is going through a divorce and would like help from a financial advisor, please do get in touch.