Divorce enquiries soar in January as expert reveals how couples can protect their finances
Couples are most likely to seek divorce advice on 5 January, as enquiries soar at the beginning of the year.
42% of marriages end in divorce in the UK, according to the Office for National Statistics.
January is typically the busiest month for enquiries around seeking an adviser to help with a divorce.
Getting divorced can be expensive and should be navigated carefully, which is why professional advice is vital.
A clear plan will help you feel confident about your financial future after divorce.
7th January, London
Divorce enquiries have seen spikes from December to January, with the number doubling month-on-month last year, according to Unbiased, the UK’s leading financial advice platform.
January is typically the busiest month for enquiries around seeking an adviser to help with a divorce, with the first Monday dubbed ‘Divorce Day.’ Google searches for ‘divorce,’ ‘getting divorced,’ and related terms also tend to peak in early January.
As 42% of marriages end in divorce in the UK, according to the Office for National Statistics, it’s vital to be aware that a divorce can have significant financial implications beyond the emotional aspect.
Key focus areas during a divorce include separating finances (such as savings and debts), distributing pensions, selling investments, deciding what to do with property, and handling any mortgages.
Getting divorced can be expensive and should be navigated carefully, which is why professional advice is vital. Planning early is essential to ensure a fair distribution of assets.
Karen Barrett, founder of Unbiased, shares 5 tips to avoid costly separation mistakes:
1. Review all financial accounts and assets: List everything you own, including bank accounts, property, pensions and investments, and any financial liabilities, such as mortgages or loans. Understanding the structure of these will make the next steps easier.
2. Seek independent advice early: A qualified financial adviser can help you navigate the complex process of dividing assets fairly and help you avoid costly mistakes.
3. Understand tax implications and plan ahead: Dividing assets may trigger a tax bill. Be aware of potential capital gains tax when selling investments and the possible impact of pension transfers.
4. Plan for property and housing changes: A home is often the biggest asset and most emotional tie. Consider whether to sell or refinance your home, or use a legal arrangement, such as a Mesher order that allows one party to remain in the home until a specific event, such as when a child reaches adulthood. You should consider solutions that minimise disruption.
5. Secure long-term financial stability: Think beyond the immediate split. Create a strategy for retirement, savings and other commitments, such as childcare or education costs. A clear plan will help you feel confident about your financial future after divorce.
“Divorce is often accompanied by a rush of decisions that can have lifelong consequences,” says Barrett.
"It’s worth considering professional financial advice with your former partner, so you can both navigate this challenging time with confidence.
An expert financial adviser can help you navigate the immediate impact of a divorce, while also helping you both plan for the long-term and ensure future financial stability.”
About Unbiased
Unbiased is an AI-enabled financial advice platform, empowering people to make confident financial decisions and delivering unrivalled growth for advice firms.
With the greatest wealth transfer in history now underway, Unbiased connects people to trusted advice across pensions and retirement, inheritance planning, mortgages, accountancy, and more.
The Unbiased platform applies advanced models trained on a rich dataset of user activity to intelligently match individuals with qualified advisers, providing the easiest and most reliable way to access financial expertise.
Since 2009, Unbiased has generated over $100 billion in AUM opportunities for financial advisers, with 65% of prospects new to advice. Reaching more than 10 million consumers annually, it is the leading source of client demand in the industry.
For more information, visit unbiased.co.uk.
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