How to Prepare for Divorce

Divorce is one of life’s most difficult transitions. For wealthy individuals, it often comes with added layers of complexity — businesses, multiple properties, pensions, trusts, investments, and sometimes international assets. The emotional strain is real, but so too are the financial consequences.    

The good news? With the right preparation, you can approach divorce with clarity, confidence, and the assurance that your financial future remains secure.    

Here are the key steps to help you prepare.  

One of the first and most important steps in divorce is gaining clarity over your finances. This goes beyond your personal bank account and includes:  

• Property (residential, rental, holiday homes, international)  
• Pensions and retirement savings  
• Business interests and shareholdings  
• Trusts and family wealth structures  
• Investments, ISAs, bonds and portfolios  -
• Liabilities such as mortgages, loans and credit cards.    

Pulling together this information not only helps with the required disclosure process but also gives you a sense of where you stand. This can be complex — often involving valuations, professional reports and careful organisation. A financial planner can work alongside your solicitor or mediator to ensure nothing is overlooked.  

Divorce settlements are rarely straightforward, especially where wealth is significant or tied up in illiquid assets like businesses. This is where financial planning can be invaluable.    

By modelling different scenarios — for example, keeping property versus selling it, or dividing pensions versus offsetting them — you can see how each option might affect your long-term financial security. This forward-looking approach helps you negotiate from a position of knowledge rather than fear.  

3. Work Collaboratively with Your Professional Team  

Divorce is best managed with a team around you. While your solicitor will guide you through the legal process, other professionals play a vital role too:  

• Financial planners can model settlements, advise on pensions, and help you plan for life after divorce.  
• Pension on Divorce Experts (PODEs) can provide impartial pension valuations and court reports where needed.  
• Accountants and tax advisers can guide you through CGT, income tax, and structuring considerations.  
• Family consultants or therapists can support your emotional wellbeing.  
• Divorce coaches can help to support you emotionally whilst providing practical advice.    
  

When professionals collaborate, you benefit from a smoother, less adversarial process, probably less costly and ultimately, better outcomes, as you will be using the right expertise for the right job.  

4. Keep an Eye on Tax and Timing  

For wealthy individuals, tax is often a central issue. Timing of transfers, sales, and settlements can have a significant impact:  

• Capital Gains Tax (CGT) rules are particularly relevant when transferring assets. Changes in April 2023 gave separating spouses more time, but planning remains essential.  
• Income tax and dividend payments may need restructuring, especially if business assets are involved.  - Inheritance tax planning may need to be revisited once the settlement is finalised.    

Early financial advice ensures these issues are factored in before decisions are made.  

5. Think About Children and Long-Term Security  

Financial arrangements for children, whether school fees, university costs, or simply ensuring their lifestyle is maintained, are often central to discussions. This may also include trusts, gifting, or long-term legacy planning.  

Considering your children’s financial needs alongside your own helps create an arrangement that feels fair and sustainable for all parties.  

6. Prepare Emotionally and Practically  

Divorce is as much an emotional process as it is a financial one. Wealthy individuals often feel particular pressure; Balancing public image, business responsibilities, and family expectations.    

Taking time to prepare emotionally, with the right support, can make financial negotiations less overwhelming. It allows you to make clearer, more rational decisions that protect your long-term interests.  

7. Plan for Life Beyond Divorce  

Perhaps the most reassuring step is looking ahead. Divorce is not only about dividing assets; It’s about shaping your future. A financial planner can help you answer questions such as:  

• Will I be financially secure after the settlement?  
• What lifestyle can I realistically maintain?  
• How do I rebuild and protect my wealth for the future?    

By creating a new financial plan, you can approach the next stage of your life with confidence.  

Summary  

Preparing for divorce is not something anyone expects to do. But if you find yourself facing it, taking the right steps early can protect your wealth, ease stress, and provide clarity for the future.    

At Smart Divorce, we specialise in helping high net worth individuals navigate divorce with confidence. We work closely with solicitors, accountants, divorce coaches, therapists and other professionals to ensure every angle is considered, and that you have a clear, reassuring plan for what comes next.    

If you’re preparing for divorce, or simply want to understand your options, we invite you to get in touch for a confidential conversation.  

Tamsin Caine
Tamsin is a Chartered Financial Planner with over 20 years experience. She works with couples and individuals who are at the end of a relationship and want agree how to divide their assets FAIRLY without a fight.

You can contact Tamsin at tamsin@smartdivorce.co.uk or arrange a free initial meeting using https://bit.ly/SmDiv15min. She is also part of the team running Facebook group Separation, Divorce and Dissolution UK

Tamsin Caine MSc., FPFS
Chartered Financial Planner
Smart Divorce Ltd
https://smartdivorce.co.uk

P.S. I am the co-author of “My Divorce Handbook – It’s What You Do Next That Counts”, written by divorce specialists and lawyers writing about their area of expertise to help walk you through the divorce process. You can buy it here https://yourdivorcehandbook.co.uk/buy-the-book