Christmas proves the last straw for many squabbling couples.
January is renowned as the busiest time of the year for divorce lawyers as Christmas proves the last straw for many squabbling couples. With money problems at the heart of many marriage break-ups, specialist divorce financial adviser Fiona Sharp has highlighted some ‘need to know’ key issues all divorcing couples need to keep in mind.
“Sadly, the spike in numbers seeking divorce advice in the New Year has become a regular event and this year the credit crunch is set to add to that pressure,” said Fiona Sharp, a financial planner with IFA firm Almary Green Investments. Emotions are usually running very high and most will be entering uncharted water which can be a minefield without help. There are simple actions people can take right from the start to ensure they are not disadvantaged later.
After the formal divorce is granted we often see one spouse, typically the woman, handed a large chunk of assets that they need to use to generate income for general living costs and also for retirement. This might be the first time they have taken control of investments and professional financial advice can be an invaluable part of helping people rebuild their lives. One of the first actions should be to deal with debt problems. Your credit history needs to be as clean as it can be. Make sure you are on the electoral role and that you don’t miss any mortgage or credit card or loan payments, to avoid a poor credit score.
At least one and potentially both partners may need to start looking for a new home so a poor credit score could impact on getting a mortgage, or on the size of a loan available. Lenders have varying requirements – some will accept maintenance as income, but others will only accept it if it is the subject of a court order which can delay house purchase. Other lenders will not accept it at all.
It is important not to rush into getting formal approval for a mortgage. These are only valid for a short time and each one leaves a ‘footprint’ on your credit history. If you have too many in a short space of time, it could lead to problems later.
Almary Green Investments has a four-strong team of highly qualified specialist divorce IFAs working alongside lawyers, providing bespoke advice and solutions. The four are among a select group of about 100 advisers to hold accreditation from Resolution, the association of family lawyers, and are experienced at working under the Collaborative Law approach which enables them to operate as Financial Neutrals to help resolve family disputes without going to court.
Posted under Personal Finance News
This post is a Blogger on January 5, 2010
