Did you know lawyers often refer to the first day back to work as ‘Divorce Day’!?

Typically, post the festive period, lawyers and law firms see a substantial rise in divorce queries. The first Monday, or first working day of the year has even been termed ‘Divorce Day’.

Alarms are set earlier than we’d like them, waistbands and wallets are stretched uncomfortably. And expectations, as well as tensions, are at an all-time high.

But this year, new research by Legal & General suggests financial pressures, as a result of the cost-of-living crisis, have delayed 19% of divorces. This is approximately 270,000+ couples, who have had to delay getting divorced. All as a result of income fears.

Financial pressures are renowned for causing couples to split. But now it seems they may also be forcing them to have to stay together. The rising cost of everyday essentials, like food and bills, mean some can’t afford to maintain two households. Even those that can, may not be able to sell their current larger family home, or afford the new mortgage rates. 

The increase in money concerns also increases the likelihood that at least one of the divorcees isn’t going to feel the proceeds split is financially fair.

Here’s where we as financial advisers can help. Good financial advice increases the likelihood of a fair and equal split of assets in divorce. But it can also help a client protect their assets as divorcees are often unaware of what they are entitled to or legally required to share. A key focus area, in either case, should be on pensions, as often a pension pot is one of the client’s largest assets.

Separations, like pensions, are complex. So, if you are advising couples who are considering divorce, or advising couples still in the honeymoon phase, divorce should be considered and discussed as part of a long-term financial plan.

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