Sadly, the number one reason women seek support with their finances is usually in the wake of a divorce. Finding they need to plan for their financial future alone can be an emotional and overwhelming time. In addition to this, only 48% of women are aware of what happens to their pension when they get divorced, with 16% losing access to any of their pension savings when they split with their partner. It is therefore vitally important that women are equipped with the knowledge needed to reach a fair settlement in divorce which will not only offer them security in the short term, but well into the future as well.
Clients I have helped speak openly about the importance of financial support, and how the advice helps them to feel better equipped and more knowledgeable to plan effectively for themselves and their families.
During these reflections I thought it could be helpful to share some key reasons women seek financial advice and how this can serve to help those who find themselves facing decisions alone.
Get started early
Divorce comes with many decisions, one of them being agreeing on a settlement with your ex-partner. This is where your financial independence begins, and it is important to know what you are agreeing to as it could have a huge impact on your financial future. One of the most significant assets a couple can have are their pensions and therefore, in the process of divorce, it is important that pensions are considered during the settlement.
It is at this point that I would advise seeking advice from a financial planner who can help by reviewing the settlement and advising you accordingly. A financial advisor with expertise in this field will be able to find any missed opportunities and help you to understand the settlement and your options fully before you sign on the dotted line.
Plan for the long-term
Only 52% of women have saved adequately for retirement compared with 59% of men. Many of my clients are great at saving and budgeting, however knowing how to implement these great habits into a long-term plan is something a financial planner can do to ensure you are set for the future and have a strong plan for retirement. It is therefore important not to overlook pensions as an asset during divorce proceedings, even if retirement seems a long way off. Pensions will be considered when dividing up the matrimonial assets, and for this reason you will need to obtain valuations for each pension you own.
Together with your advisor you can discuss your long-term goals which will help you to prioritise and create a strategy with a budget. We can advise you on pensions as well as investing and taxes and help you to set a budget to support your goals.
Consistency matters
As a financial planner who has helped women navigate post – divorce finances, I know only too well that knowledge is power. Giving our clients the knowledge to know what to do with their finances leads to consistency in their finances which helps to bring them valuable peace of mind. Once your finances are in order you can relax in the knowledge that your money is taking care of itself and you can put your focus on your priorities in life.