5 Tips for Finances After Divorce – Can I Continue the Same Lifestyle?

For many families, the inevitable consequence of a divorce is a change in lifestyle from which they currently enjoy. This is because the parties’ assets and incomes must now extend over two separate residences. Plus, many divorcing spouses are clouded by their emotions and choose not to take a wise financial route during the divorce proceedings. 

During your divorce proceedings, Goodwins can help you make the most of your finances going forward and help you understand what sort of lifestyle will be achievable. In this article, we set out five tips for protecting and utilising your finances following your divorce.

Get financial advice

Financial advice is the most important investment you can make following your divorce. There are so many different rules and regulations when it comes to finances during a divorce, it can be hard to get your head around everything. 

A reputable lawyer will always recommend the importance of obtaining appropriate financial advice from an appropriate professional relevant to your circumstances.

Consider mediation

A divorce doesn’t always have to be settled by the courts. Mediation is a great way to reach settlements with your partner without paying hefty court fees. Unfortunately, many divorcing spouses let their emotions cloud their judgement and refuse to mediate properly. We will always urge you to consider mediation before progressing your case to the courts. Not only will you avoid hefty court fees, but you put your financial future into your own hands instead of the hands of judges with significant amounts of discretion.

Invest your money

After taking a financial hit following your divorce, it’s important that you’re smart with your money. Instead of indulging in luxuries as a means to distract you from your problems, we strongly recommend investing your money for the future. 

Downsize your home

Even if you are emotionally attached to your home,  it’s smart to downsize following a divorce. As you are separated, you and your ex-spouse’s incomes and assets must extend over two properties instead of one. We recommend downsizing to a new home that is affordable for your new financial situation.

Negotiate and don’t split it all 50/50

Many people mistakenly believe that many of their assets must be split 50/50. In many cases you will be entitled to keep more than 50% of an asset’s value. There are many laws and rules regarding asset split, so we highly recommend using a reputable lawyer who can negotiate on your behalf.

If you would like to arrange an initial fixed fee consultation regarding divorce proceedings, please feel free to get in touch with the Goodwins team — we’ll be happy to help. Our offices are conveniently based in Harrow, London, with on-site car parking and accessible from public transport links. Alternatively, if you are overseas we can arrange a video call with you if it is more convenient.