Only 7% of people seek financial advice during divorce

Recently, Legal & General teamed up with Opinium and did a study that showed only 7% of people seek advice from a financial adviser during a divorce. This leaves nearly half of divorces where one party feels financially disadvantaged.

The firm said that this lack of professional guidance leaves many vulnerable to significant pitfalls with potential long-term consequences. The research shed light on common financial missteps that divorcing couples face as they separate their assets. This includes:

Overlooking pensions

Half of divorcing couples consider the family home during the asset division, but only 13% account for pensions. Nearly a quarter waive their rights to their partner’s pension.

Failure to update wills and beneficiary details

Around one in 10 divorced individuals forget or delay removing their ex-partner from their will, potentially leading to disputes in inheritance. A similar proportion of people fail to update the beneficiary details on pensions or life insurance policies, risking unintended outcomes.

To prevent these issues arising, divorcing couples are urged to:

· Set a realistic budget that accounts for new living costs but also legal fees, shared debts or ongoing commitments.

· Ensure they have a complete understanding of the costs of divorce and make sure it covers everything, such as a Clean Break order, to protect your finances in the future.

· Review all assets, including pensions to ensure nothing is overlooked in the settlement.

· Update important documents, such as wills and life insurance policies, ensuring named beneficiaries reflect new circumstances.

If you feel that you could benefit from advice from a qualified professional, please do not hesitate to get in touch.