How to get the best from your divorce settlement

The current world recession is likely to be even worse for divorced people than for the rest of the population.  Most divorcees find themselves in a challenging (that is to say, at times, bloody difficult) position.

Our thanks for the world's economic problems must go the greed, stupidity and ignorance of bankers who saw making vast profits for themseves at the expense of their clients as the primary function of the banking system.  A certain amount of contrition has now crept into their attitude so it may be a move to a more responsible and honest banking system. 

Invest wisely
The divorce settlement often results in a cash lump sum or other assets such as stocks, bonds or property, usually the family home.  These need to be used and invested wisely, whether you are 25 or 55 your financial future is of paramount importance.  To navigate your way through the unfamiliar and ever changing financial landscape you need a guide and adviser; you need an Independent Financial Adviser (IFA) to give you impartial, professional advice.

working out the finances notebook and spectaclesThe decisions you will need to make are best made with the benefit of top quality advice from a professional.  Far too many take the easy option and ensure that any such funds are invested within their own personal comfort zone. This usually means the building society or National Savings - investments which are safe, predictable and readily accessible.

High inflation might just return
These days the erosion of the value of your capital through high inflation is not a problem.  However, this situation will not last forever and given half a chance I'm sure our global banking friends could arrange for its return if they thought they could make a profit out of it.

While it is sensible to keep a proportion of any capital sum in interest bearing accounts, if you need to derive an income from your money and still give your capital a chance of keeping pace with inflation, it is imperative that you take independent financial advice from an IFA.

Professional, impartial advice
He or she will sit down with you to understand your current financial position and only after that assess needs with regard to risk as well as potential reward. IFAs are highly regulated with a strict set of rules and code of conduct.  Usually the first meeting is at no charge.  They are not salespeople but advisers who have a duty to look after your best interests.  They will even do most of the paperwork so it's even easier for you.

 

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