Once your marriage or civil partnership has come to an end, there will be many things that have to be adapted to suit your new way of life.
Whether you are set to be single for a time or are embarking on a new relationship, one thing that cannot wait is your financial portfolio.
Failing to account for your savings and investments following a divorce can see you lose the value you have worked hard to generate over time, so an effective management strategy is vital.
Untangling assets
Before getting to grips with your portfolio, you need to ensure that it is actually yours.
If you have any remaining joint accounts or shared investments, these will need to be separated before you can make use of them.
Financial assets should be divided during divorce proceedings and while the arrangements for how they should be split will form part of the financial remedy order after a divorce, you will still need to ensure this is completed in accordance with what was decided.
It is wise to conduct divisions in a tax-efficient manner so that you do not inadvertently lose value during transfers.
Your pensions may need additional consideration as these can be handled in a variety of ways during the divorce and could still be interconnected after you have parted ways.
Adapting to your new financial situation
Depending on how involved your ex was in your portfolio, the impact of their not being around may vary.
If your ex was highly involved and their income formed a large part of your savings strategy, it will be necessary to adjust your plans to account for this loss.
Even if they did not directly contribute to the portfolio itself, having a second source of income may have emboldened you to make higher-risk investments that may no longer be advisable.
It is worth considering a low-risk investment strategy in the short term, while you reestablish yourself in your new financial situation, so that you do not place your long-term financial wellbeing at risk.
Seeking financial advice
Just as a solicitor guided you through your divorce, having an expert financial adviser determine a new savings strategy is vital.
We can review your portfolio and plans to determine what changes should be made to keep your existing wealth safe while creating scope for future growth.
To make sure divorce does not derail your portfolio, get in touch with our team today.
