Money is the keystone of the divorce process. Get it right

Money and the material wellbeing that it affords can play a big part in the success or otherwise of a marriage.  If it all goes wrong and the only answer is to divorce then money (or the division of the family assets) will again play an important role in the divorce proceedings.

If you cannot reach an agreement on how the assets are to be split the court will make a judgment which is, of course, binding on both of you.  This is not the way to settle any matter especially complex financial matters in an atmosphere of great pressure and distress that is the divorce process.

nuclear fission diagramTry splitting an atom, it might be easier
Splitting the family finances is a bit like splitting the atom, dangerous and with the potential to cause a devastating explosion and years of deadly fall out.  This can be avoided if you seek proper financial advice from an Independent Financial Adviser who has specialist knowledge of divorce finance.

Not only is this advice vital before the divorce proceedings even begin but also following the settlement.  Given that many couples do not really have the financial resources to have a divorce without financial problems using what you do have to best advantage is absolutely vital to a secure life after divorce.  This can only really be done if you have specialist financial advice from a divorce finance expert.

Consider which assets are most appropiate
Family assets come in many flavours, from cash in the bank to pension plans and life insurance.  You may think it good strategy to lay claim to every asset you can.  However, remember some assets come with costs, responsibility and possible tax implications.  It's tempting to ask for the house but whilst it's almost certainly the most valuable family asset it may still require monthly mortgage payments and be costly in terms of insurance and upkeep.

Plan your financial future
It's so easy to think well I'll just keep going and it will be alright.  In fact it probably will.  However, there are certain financial events in the future that have a strong possibility of happening.  A place at university is becoming far more available to students from all backgrounds and from a wide spectrum of academic abilities.

Now even the most modest university offering a degree in Occupational Safety is going to involve a student loan (and the resultant debt) of around £9,000.  Though it has to be said you could read Mathematics at Cambridge for the same price.  Your daughter's wedding could beat that cost by a country mile!  These events need to be planned for. 

Rebuild your credit position
This again will take time and real effort.  If your credit rating is OK that's great.  What you need to do now is to maintain it that way in the new financial life after divorce.  Either way the best plan is to rebuild your individual credit history by using one or two credit cards, use them regularly, and pay the balances off each month.

Finally, get the housekeeping right so that there is nothing hanging over from before the divorce.  Make sure that the all the paperwork is correct so that nothing your ex spouse might do can impact your credit rating.  Getting all this stuff sorted will take some of the pressure off and give you a great start in your new life after divorce.

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